Green Human Resource Practices: Implementations and Hurdles of SMEs in Pakistan

Abstract

The main focus of this research paper is to explore the different aspects of green human resource management and also analyze barriers which occur during the implementation of its practices as well as study the green approach influence on training and developments, performance management and recruitment. To present a comprehensive literature review of green HR practices in Pakistani small and medium-sized enterprises (SME), the authors did an online survey questionnaire. Likert scale is used according to the adoption of green human resource practices and examines how the practices have positively influence on employee performance. They used 5 point Likert scale from the sample of 140 employees of 42 SMEs. But 132 useable responses were received. The data was analyzed in SPSS 20. Descriptive statistics and correlation tests were applied to get the result. The findings indicate that the green HR practices are influenced by several factors. All factors influenced on the employee performance in the sample to adopt green human resource practices.

Headnote

Abstract

Purpose: This paper is on the growing importance of Green Human Resource perspective for small and medium-sized enterprises. There are a lot of small firms that experience crucial human resource difficulties, but in the same manner, human resources also act a main role in developing and sustaining their competitive resources in employee performances. The main focus of this research paper is to explore the different aspects of Green human resource management and also analyze barriers which occur during the implementation of its practices as well as study the green approach influence on training and developments, performance management and recruitment. To present a comprehensive literature review of green HR practices in Pakistani SMEs, we did online survey questionnaire.

Design/methodology/approach: Likert scale is used according to the adoption of green human resource practices and examines how the practices have positively influence on employee performance.We used 5 point Likert scale from the sample of 140 employees of 42 SMEs. But 132 useable responses were received. The data was analyzed in SPSS 20. Descriptive statistics and correlation tests were applied to get the result. The research question was that is there a significant relationship between green HR practices and employee performance. The results showed a positive relationship between green HR practices and employee performance and used pearson correlation on two variables green HR practices and employee performance and the correlation itself was .627

Findings: The findings indicate that the green HR practices are influenced by several factors (Age, Experience, and Gender). All these factors influenced on the employee performance in the sample to adopt green human resource practices.

Originality/value: The basic signification of this paper is that SMEs, particularly in the developing domestic and collectively owned small firms, in Pakistan, may see positively the benefits of paying greater considerations and attention to HR practices for gaining their future progress promisingly in employee performance.

Keywords: Green HRM, Green HR practices, Employee performance, T&D, Recruitment

Introduction

Presently, existence of green concept in the organization is becoming a standard (Margaretha & Saragih, 2013) as well as in the field of management, the scope of research is increasing day by day on the literature of green marketing, its accounting, environmental management and green human resources management (D. W. Renwick, Redman, & Maguire, 2013). Furthermore, there is developing requirement for the assimilation of green management in the field of human resource which is also called green or environmental human resource (Dutta, 2012; Margaretha & Saragih, 2013). On the other hand, it is noticeable that this field is still on the infancy stage and most of the research studies on green human resource management is still on theoretical stage (Jabbour, 2013). Today, companies are realizing the need of strong grip of social moral sense and responsibilities towards green sense, building brands and having all essential tools for it as it is not the only responsibility, development in other areas is also very necessary for business (Sathyapriya, 2013).

"Being green" is very comprehensive procedure in which organization's main objective is to reduce cost, creative usage of energy, less waste of viable resources or materials that can be recycled for end products etc. (Jafri, 2015). For the development of green organization, the company and its human resources department should come up with efficient strategies, they should learn to perform the procedure in short time period, utilization of compensation resources should be minimum and creative, unnecessary travelling and spending time in office should be eliminated. Organizations which are supporters of "green" strategies include telecommunication and companies which have flexible work hours (Sathyapriya, 2013). To inaugurate and sustain a "green" concept in the organization we require workers who have interest in eco-friendly issues, therefore the organization should hire people accordingly (D. W. Renwick et al., 2013). To compose green policy, definite objectives should be taken to enhance environmental performance, green management system, to publish the reports of green performance, green coaching and development of its knowledge, environmental buying guidelines, policy developments required for minimizing the usage of fossil fuel and other unsustainable products (Ramus, 2002). The general reputation of the company improves if its environmental performance is good and also draws attention towards great potential employees. The progress on green theory encourage organization to evolve their worker's ability to create and synthesize products that closely follow agreement or instructions by green regulations (Chen, 2012). By developing market image, there is higher appealing public reputation, extra efficacy business procedures, better employment, better quality of goods and services,raise in workers work rate, better competitive advantage, more determination and confidence, increasetrust of the customers, more motivated employees engaged and committed towards their work due to the embracement of environmental human resource management(D. W. Renwick et al., 2013). Furthermore, Renwick (2013) stated "employee motivation to become involved in environmental activities lags behind that of how organizations develop Green abilities and provide employees with opportunities to be involved in green management organizational efforts" (D. W. Renwick et al., 2013). According to Correa (2013), countless organizations that use green HR management, have gained benefits in many different ways, green policies implementation is beneficial for organization. Their employees are more self-confident and have positive attitude towards their work and firm's financial performance is improved. Almost each adoption of green guideline and principle assist businesses profit by decreasing their unfavorable bad effects on environment and by developing their labor work rate(Delmas & Pekovic, 2013).

Presently, according to these explanations as well as the significance of this matter in the manufacture business, there should be focus to examine and analyze thoroughly the obstacles on green HR management in businesses, this research article also focus on identifying hurdles that Pakistani bed wear manufacturer can face while practicing green human resource management.

1.1.Objectives

The main idea of this study is to explore the importance of relationship between Green HR Practices and Employee Performance and how the T&D, Recruitment will impact on employee performance. In order to investigate the status and extent to which certain SMEs in Pakistan have adopted Green HR Practices as well as to enable HR practitioners to have better understanding of drivers and barriers to implementing Green HR practices a survey of HR professionals was conducted.

Taking the perspectives both from inside Pakistan and globally, we therefore adopt the following scales to define SMEs in this paper:

i. Micro businesses are those with less than 25 employees;

ii. Small firms are those with less than 50 employees;

iii. Small-medium enterprises are those with less than 100 employees;

iv. Medium-sized enterprises are those with less than 500 employees;

v. Medium-large firms are those with over 500 employees.

This paper presents the study of empirical analysis of the implementation of Green HR Practices in Pakistani SMEs. The paper is organized as follows: First, literature review that examines the drivers and barriers to implementing of green HR Practices, second is methodology of empirical quantitative study and then covers the results and conclusion.

2. Literature Review

A green business is more impressionable towards environment, resources effective and have more awareness towards social responsibilities (Sathyapriya, 2013) furthermore, it assimilate a fundamental system and green enterprise. Google is not only dominating in its green practices, additionally it is successful in publication of their records (Kaur, 2013)many organizations can incorporate appropriate HRM methods to encourage their employees and achieve environmental goals(Paillé, Chen, Boiral, & Jin, 2014). Green human resource is correlated with employee's collaboration to advance continuous practices and to develop better awareness in employees and more engagement towards the topic of continuity in this process. Environment Human Resources is the application of human resources management policies to improve and develop the maintainable application of these resources in the organization and foremost focus is on environmental application(Sathyapriya, 2013) . Nonetheless, it is noticeable that green HR management has its uniqueness as well as its subsystems are different from typical Human Resources management subsystem.

It might be noticeable that, Human resource practices is another tactic to sharply monitor performance, as compared to other pay structure systems such in which employees receive the same pay disregarding to their performance level but human resource practices which involve paying every employee on the performance level, this method of HR establishes way towards less wastage for the business. Human resource practices promote and engage employees. The Human resources system logically indicates that if effects employee job attitude. The more employees realizes his or her worth in the organization and considered themselves as an asset towards their employees, they get more committed and gain loyalty towards their work and organization. In simple words, employee develop strong bond with organization (Eisenberger, Fasolo, & Davis-LaMastro, 1990). Therefore, when a well-designed pay and bonus system is established by human resources, it engages and motivate employees to work more effectively to achieve the desire goals as well as motivated employees carry extra effort in their work for high performance (Levine & Tyson, 1990) Human resource systems affect and leave impact on the employees level of motivation and also helps build trust in management by two common approaches: Firstly, employees feel safe to share their ideas, views and don't fear exploitation from employees. Hence develop a trustful relationship in the work environment. Secondly, sharing is also viewed by employees as an act of goodness that may also indicate as exchange of gift, therefore it may increase employee commitment and work effort (Mühlau, 2000). Human resource practices also influence employee's capability to innovate, some of them also include multidisciplinary workgroups, systems for quality assurance and employee proposals, designing job structure, assignment of responsibility, assimilation of different functions and planning payrolls according to the performance (Laursen & Foss, 2003). Training programs are also significant as they improve employee's knowledge. Hence, proper organization and conduct of training program might prove to be an essential method towards developing strong bond between local and parent companies, that can also be helpful to increase collaboration and exchange of knowledge (Laursen & Foss, 2003; Lyles & Salk, 1996). Some of the best theories on practices or other theories regarding high commitment indicate that, positive human resource management practices, combination of these practices or even single ones have significant role in improving the performance level of organization. These practices result in motivated, determinant and wellpaid employees, healthy working atmosphere as well as generate high rate of production gains and decrease the amount on unit costs (Boxall, 1996; Lowe & Oliver, 1991; Pfeffer, 1994).

Organizations which are following green policies always indicate the importance of green employment(CIA & HUSSAIN, 2013) In other words, it's an organization activity which focus to find and engage promising applicant for new or existing job opportunities. Hence, the employment procedure is focused to have impact on the quota and nature of applicants for a unique job opportunity. There is still very limited information regarding the act of including green issues in a company's employment procedure. Normally, when recruitment process inserts the green element (Jose Chiappetta Jabbour, 2011),recruitment process of an organization can encourage efficacy in green management by establishing that the recent recruits know and understands the green culture of the company and also supports its green values (Jackson & Seo, 2010) The job characterization should also mention the maintainability plan as well as on its website and other analysis tools should be available for the applicant so they can access it easily and help them in better understanding it green outlines(Mandip, 2012). Further, (Kola-Olusanya, 2013) examined and analyzed on inserting green sustainability appropriateness in human training and development (T&D). Author came to the conclusion that there is a need of better learning of correlation between green implementation and sustainability, it should become basic and continuous element of the public responsibility procedure. In simpler words, T&D are important aspects in the implementation process of environmental management(Delmas & Pekovic, 2013). Training and development (T&D) procedures are using right machinery to achieve its sustainability and eco-friendly practices which in a long run can build favorable circumstances to obtain better capital(Kola-Olusanya, 2013). In addition, organizations those want to have successful green management should implement green HRM Practices, green training should also be highlighted. (Teixeira, Jabbour, & de Sousa Jabbour, 2012), stated "green training is one of the most important tools to develop human resources and facilitate the transition to a more sustainable society"(Teixeira et al., 2012).

Programs for managing performance are important for the insurance of efficacy of green management, with time gaudiness for performance of employees towards green performance are desired by the company (Jabbour & Santos, 2008). Further, the other good way to beneficially implement environment performance management is to develop strong linkage between performance management and green job description (Mandip, 2012). There are different ways for measuring environmental performance such as embracing company-wide metrics for checking resource recovery, manage customs and wastage, incorporate information systems for tracking the inflows and outflows of resources and for carrying out field analysis to provides workers with opportunities to analyze errors as well as ways to gain information and assessment about the green performance of the organization (Jackson & Seo, 2010). Adopting performance management in green management adds more tests to measure environmental performance rules and regulations and gain helpful data on the green performance of managers. Performance management can also include various topics like environmental events, use of different environmental responsibilities as well as discuss policies and procedures(D. Renwick, Redman, & Maguire, 2008).

There should also be policies for rewards to engage, retain and motivate the promising employees, promoting the improvement and development of new abilities which can help to achieve the main goals (Teixeira et al., 2012).Environmental companies should consider bonus or other rewards for the recycling procedures and also for activities which include reducing wastage (D. Renwick et al., 2008). In broad, green corporations should develop rewarding system to promote the green attitude in green management and for that it requires efficient employment which include both incentives and disincentives(D. Renwick et al., 2008). The quantity of the rewards depends on various test factors of green attitude of the employees which means specifically not on the base of significant outcomes of company in environment performance (CIA & HUSSAIN, 2013). The system of rewards and incentives will helptodevelop commitment towards the significance of green performance (Daily & Huang, 2001).

3. Hypotheses

H1: There is significant relationship between green HR practices and employee performance.

H1a: There is significant relationship between T&D and employee performance

H1b: There is significant relationship between recruitments and employee performance.

The response rate of collected questionnaires was 94.2% and correlation test was used. When the results of these data were analyzed, we observed the result of demographic three factors gender, age and experience.

5. Methodology

An empirical analysis was chosen for methodology. There was used Likert scale in a structured questionnaire. All the questions were on green HR practices and employee performance. There were used an online survey questionnaire. We sent 140 survey questionnaire to 42 bed wear manufacturing SMEs but in return 132questionnaires were received.

According to industry source, there are approximately 400-475 units producing bed wear manufacturers in Pakistan. The classification of units in small & medium is based on the operation rather than the product. The bed linen industry may be large or small depending upon the number of operations carried out by the unit itself. It may involve weaving /knitting, processing, and stitching(http://www.smeda.org.pk)

6. Demographic Factors

The below table no 1 shows that the majority of respondents were male 71.2% of the total sample and the females were 28.8%. The employees belonged to the age group of 20 to 25, 37.1% to the age group of 26 to 30, 28.8% to 31 to 35, 24.2 to 36 to 40 8.3% while the 32.1% belonged to the age group of 41 and above. The majority of the employees (64.4%) have to experience of one to five year. There 26.5% people belonged to the experience group between six to ten years. From eleven to fifteen years were 7.6% and the rest belonged to more the fifteen years of experience group.

Demographic Results:

7. Correlation Analysis

We used pearson correlation on two variables of green HR practices and employee performance and the green HRM practices itself . The result indicate a positive significant relationship between Traning & Development and employee performance (r=.510, p <0.01). we can also see that recruitment process is also have significanlty positive association with employee performcance. Finally the results of strong positive and significant association of overall green HRM practices with emplyees performance are alsp displayed (r = .627, p < 0.01).

The p-value, denoted by "sig. (two- tailed" .000). The results indicated on the base of N=42 and a strong linear relation was observed between green HR practices and employee performance. Pearson correlation was .73, p=.000 (2-sided) .

Pearson Correlation Results:

8. Conclusion:

The results of this study explored that demographic variables have a significant role on impacting the level of performance for each individual. This study might be further investigated to extend the findings in these areas:

First and foremost, extend the research in other companies of different size and different global presence. This was to test if the hypothesis that green HR practices do indeed affect employee performance. Second, this study can also be extended to include the correlation of green human resource practices to employee performance and how this will vary in different corporate cultures.

Hence, this field must acknowledge all elements and benefits of green approach and try to implement it effectively. Accordingly, consider the implementation of this approach in deparatment of human resources as well. In simpler words, assimilation of it is required in human resources deparatment because of its growing demand (Dutta, 2012). Simultaneously, enviromental human resource management is required for the implementation of human resource strategic system which also suitable for the culture of organization and other long-term goals(Sudin, 2011). As a result, conclusion of this research study and analyst concluded that appropriate worker who have interest in green approach and also possess right set of skills and capabilities for adequately implementing enviormental management system through out the organization(Sudin, 2011). Developments and innovations in this field count on abilities of human resources (Sudin, 2011). Rangarajan and Rahm (2011) stated that appliance of green human resources management is positively influenced subjects like earnings, profits, literacy, ecological, knowledge and background involvement in green approach(Rangarajan & Rahm, 2011).Acceptance from employee and modifying operation system according to it is very essential for the successful implementation of green management. The conculsion of this research study have highlighted the main hurdles for the implementation and not good planning for implementation as well as inconclusive view of green value. Resistance level from the employees is also maintained the minimized significance. Peng and Lin (2008) suggest main factors for green human resources management implementation like resistance and employee pressures. Also which is not consistent with this research study results. Careful examination as well as well aas classification, different culture aspects, inconclusive consideration of green apporach among the different technological factors, barrier and other complications while the adoption of green technology, management element, inadequacy of over all planning. While implementation of green human resources management and other relative factors to the employees (Peng & Lin, 2008).(Jackson & Seo, 2010) stated that not taking enough interest and complexity were hurdle of it. In this research study the conculsion were also consistent. According to their study they stated many resaons that can cause lack of interest such as not fully understanding the benefits, unsustainability, not trusting the system in first place, not open minded forwards change(Jackson & Seo, 2010).

Additionally, (Rompa, 2011)suggested that not enough technology support is also considered as a hurdle in implementation of green human resources management; one of the reasons for the lack of technology support probably the lack of fatalism. They also stated not enough support from stakeholder can be another barrier towards its implementation.

9. Further Research: Strengths and Weaknesses

The future directions of this research are the following:

* We used both perceptions of HR resources and performance as predictors of SMEs climate.

* Specific indicators of HR practices (i.e. T&D, motivation) were tested in the research model.

* We used data of Small & Medium Enterprise Development Authority Ministry of Industries, Production & Special Initiatives Government of Pakistan.

Moreover, the present study has still some unknown areas, through which future researcher can explore and highlight more information in SMEs. We conducted our research through online survey questionnaire. But there can be get more data and information through interviews and observation. Moreover, quantitative and qualitative researches will be more valuable and beneficial for researchers and would be indeed an interesting topic for future research. Finally, research could be carried out in other sectors like agriculture, poultry farming, fishing, textile industries etc.

References

References

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Dutta, S. (2012). Greening people: a strategic dimension. ZENITH International Journal of Business Economics & Management Research, 2(2).

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Margaretha, M., & Saragih, S. (2013). Developing new corporate culture through green human resource practice. Paper presented at the International Conference on Business, Economics, and Accounting.

Mühlau, P. (2000). The governance of the employment relation. A relational signaling perspective. University of Groningen.

Paillé, P., Chen, Y., Boiral, O., & Jin, J. (2014). The impact of human resource management on environmental performance: An employee-level study. Journal of Business Ethics, 121(3), 451466.

Peng, Y.-S., & Lin, S.-S. (2008). Local responsiveness pressure, subsidiary resources, green management adoption and subsidiary's performance: Evidence from Taiwanese manufactures. Journal of Business Ethics, 79(1-2), 199-212.

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Sathyapriya, J., Kanimozhi, R., & Adhilakshmi, V. (2013). Green HRM- delivering high PERFORMANCE HR systems. International Journal of Marketing and Human Resource Management, 4((2)), 19-25.

Sudin, S. (2011). Strategic green HRM: A proposed model that supports corporate environmental citizenship. Paper presented at the International Conference on Sociality and Economics Development, IPEDR.

Teixeira, A. A., Jabbour, C. J. C., & de Sousa Jabbour, A. B. L. (2012). Relationship between green management and environmental training in companies located in Brazil: A theoretical framework and case studies. International Journal of Production Economics, 140(1), 318-329.

Boxall, Peter. (1996). The strategic HRM debate and the resource-based view of the firm. Human resource management journal, 6(3), 59.

Chen, S.Y., Tien, P.W., Chen, K.C., & Lee, I.U. (2012). The influence of environmental commitments on green intellectual capital. Business and Information, 283-308.

CIA, Alejandro, & Hussain, Muzzaamil. (2013). Human resources practices related to environmental sustainability.

Daily, Bonnie F, & Huang, Su-chun. (2001). Achieving sustainability through attention to human resource factors in environmental management. International Journal of Operations & Production Management, 21(12), 1539-1552.

Delmas, Magali A, & Pekovic, Sanja. (2013). Environmental standards and labor productivity: Understanding the mechanisms that sustain sustainability. Journal of Organizational Behavior, 34(2), 230-252.

Dutta, Sumanta. (2012). Greening people: a strategic dimension. ZENITH International Journal of Business Economics & Management Research, 2(2).

Eisenberger, Robert, Fasolo, Peter, & Davis-LaMastro, Valerie. (1990). Perceived organizational support and employee diligence, commitment, and innovation. Journal of applied psychology, 75(1), 51.

Jabbour, Charbel José Chiappetta. (2013). Environmental training in organisations: From a literature review to a framework for future research. Resources, Conservation and Recycling, 74, 144-155.

Jabbour, Charbel José Chiappetta, & Santos, Fernando César Almada. (2008). Relationships between human resource dimensions and environmental management in companies: proposal of a model. Journal of Cleaner Production, 16(1), 51-58.

Jackson, Susan E, & Seo, Janghoon. (2010). The greening of strategic HRM scholarship. Organization Management Journal, 7(4), 278-290.

Jafri, Md Hassan. (2015). Increasing Employee Performance through Improved Sense of Ownership and Fulfillment of Expectations. Management Today, 5(2).

Jose Chiappetta Jabbour, Charbel. (2011). How green are HRM practices, organizational culture, learning and teamwork? A Brazilian study. Industrial and Commercial Training, 43(2), 98-105.

Kaur, H. (2013). Today's Success Mantra-Going Green at Functional Areas of HRM. International Journal of Management & Business Studies, 3((1)), 96-99.

Kola-Olusanya, Anthony. (2013). Embedding environmental sustainability competencies in human capital training and development. Mediterranean Journal of Social Sciences, 4(4), 65.

Laursen, Keld, & Foss, Nicolai J. (2003). New human resource management practices, complementarities and the impact on innovation performance. Cambridge Journal of economics, 27(2), 243-263.

Levine, D, & Tyson, L. (1990). Participation, productivity and the firm's external environment'in Blinder. Paying for Productivity, Washington DC: Brookings Institution.

Lowe, Jim, & Oliver, Nick. (1991). The high commitment workplace: Two cases from a hi-tech industry. Work, Employment & Society, 437-450.

Lyles, Marjorie A, & Salk, Jane E. (1996). Knowledge acquisition from foreign parents in international joint ventures: An empirical examination in the Hungarian context. Journal of international business studies, 877-903.

Mandip, Gill. (2012). Green HRM: People management commitment to environmental sustainability. Research Journal of Recent Sciences ISSN, 2277, 2502.

Margaretha, Meily, & Saragih, Susanti. (2013). Developing new corporate culture through green human resource practice. Paper presented at the International Conference on Business, Economics, and Accounting.

Mühlau, Peter. (2000). The governance of the employment relation. A relational signaling perspective. University of Groningen.

Paillé, Pascal, Chen, Yang, Boiral, Olivier, & Jin, Jiafei. (2014). The impact of human resource management on environmental performance: An employee-level study. Journal of Business Ethics, 121(3), 451-466.

Peng, Yu-Shu, & Lin, Shing-Shiuan. (2008). Local responsiveness pressure, subsidiary resources, green management adoption and subsidiary's performance: Evidence from Taiwanese manufactures. Journal of Business Ethics, 79(1-2), 199-212.

Pfeffer, Jeffrey. (1994). Competitive advantage through people. California management review, 36(2), 9.

Ramus, Catherine A. (2002). Encouraging innovative environmental actions: what companies and managers must do. Journal of world business, 37(2), 151-164.

Rangarajan, Nandhini, & Rahm, Dianne. (2011). Greening Human Resources A Survey of City-Level Initiatives. Review of Public Personnel Administration, 31(3), 227-247.

Renwick, Douglas, Redman, Tom, & Maguire, Stuart. (2008). Green HRM: A review, process model, and research agenda. University of Sheffield Management School Discussion Paper(2008.01).

Renwick, Douglas WS, Redman, Tom, & Maguire, Stuart. (2013). Green human resource management: a review and research agenda*. International Journal of Management Reviews, 15(1), 1-14.

Rompa, Irene. (2011). Explorative research on Sustainable Human Resource Management. Master's Thesis. University of Amsterdam.

Sathyapriya, J., Kanimozhi, R., & Adhilakshmi, V. (2013). Green HRM- delivering high PERFORMANCE HR systems. International Journal of Marketing and Human Resource Management, 4((2)), 19-25.

Sudin, Suhaimi. (2011). Strategic green HRM: A proposed model that supports corporate environmental citizenship. Paper presented at the International Conference on Sociality and Economics Development, IPEDR.

Teixeira, Adriano Alves, Jabbour, Charbel José Chiappetta, & de Sousa Jabbour, Ana Beatriz Lopes. (2012). Relationship between green management and environmental training in companies located in Brazil: A theoretical framework and case studies. International Journal of Production Economics, 140(1), 318-329.