Relationship between public sector reforms and culture: The implementation of NPM‐related performance management reforms in a collectivist and risk averse culture

Abstract As performance management reforms gain traction worldwide, their implementation, however, has demonstrated mixed results. This trend is visible in the manner countries have adopted and implemented New Public Management (NPM)‐related public sector reforms that are based on the neo‐classical and business models of organisation and management. Experiences in various countries demonstrate that the inherent individualistic aspects of NPM‐related performance management do not suit the context of countries with a collective culture. The introduction of a series of NPM‐related performance management reforms introduced to Bhutan’s civil service over the last 15 years explores the relationship between public sector reforms and culture. This article highlights the challenges faced in the implementation of performance management reforms in Bhutan’s collectivist and risk averse culture. Bhutan’s experience in the implementation of NPM‐related reforms provide an insightful lesson for other countries with similar culture and context.