Organizational Culture and Good Governance in the Public Sector: The Case of Provincial Administration in Thailand

Abstract

The implementation of the performance agreement (PA) scheme, using Key Performance Indicators (KPIs) to measure performance, is one of the tools to promote good governance in the Thai public sector. The PA scheme has been carried out since fiscal year B.E. 2547 by the Office of the Public Sector Development Commission (OPDC). It aims to enhance good governance in the public sector on dimensions such as effectiveness, efficiency, accountability, participation, and transparency. However, PA has faced several challenges, most notably due to organizational culture — the informal authority that influences attitudes, values, beliefs and behavior of organization members — that have affected public sector reform in the context of the New Public Management (NPM). Therefore, an in-depth study of the relationship between organizational culture and performance in the public sector is important to further develop good governance.

This research aims to: 1) determine whether there is a relationship between organizational culture and good governance; 2) examine the civil service organizational culture at the provincial administration level, and to ascertain if there are cultural differences between provinces with high and low KPI scores; and 3) examine civil servants’ perceptions of their experience relating to the PA scheme. The research uses mixed methods, questionnaire surveys and semi-structured interviews, based on the Competing Values Framework (CVF).

The findings suggest that a strong organizational culture plays a significant role in achieving high performance in the provincial administration. Style of leadership, such as participative leadership, and management style, also appear to be important factors that influence the public sector to perform at a high level. To change organizational culture is, however, difficult and time-consuming. It may therefore be more effective to focus on changing and developing more effective leadership and management styles to bring about higher performance of the local administration.