GHRM: Motivating Employees towards Organizational Environmental ...

MAGNT Research Report (ISSN. 1444-8939)

Vol.2 (4). PP: 267-278

GHRM: Motivating Employees towards Organizational Environmental Performance Muhammad Hassan Jabbar1, Muhammad Abid2 1 Lecturer, GIFT University, Gujranwala, Pakistan 2 Assistant Professor, GIFT University, Gujranwala, Pakistan Abstract The purpose of this study is to investigate about factors that motivate employees towards organizations environmental performance. Firms by adopting Green human resource management practices (GHRM) can play a pivotal role in promoting environment related concerns. In this study empirical investigation has done to explore the factors that trigger the employees to be involved in green human resource management practices. Data was collected from 178 employees of the firms that use GHRM practices. Convenient Sampling was employed for data collection. The findings of the paper suggest that how HRM practices influence employee motivation to become involved in organizational environmental performance. This study elucidates that employees are more motivated towards eco-initiatives through rewards (monetary & non-monetary). Moreover, this study proposes that members of staff are more ready to take on environmental initiatives when their supervisors show encouraging behavior in regards to environmental ideas. The only limitation to the study is inadequate availability of primary data since rare organizations are practicing Green HRM due to lack of understanding about it. Key Words: Green HRM, Green practices, Eco-initiatives, Employee motivation, Management commitment, Environmental Training Paper type: Research Paper

1. Introduction In such a today’s competitive world organizations aren’t solely facing economic but environmental challenges as well. At present society has become greatly aware and concerned about environmental issues. To date a lot has been researched regarding Green Marketing (Peattie, 1992), Green Accounts (Bebbington, 2001; Owen, 1992), and Green Retailing (Kee-hung et al. 2010) and Green Management (McDonagh and Prothero, 1997) but Green Human Resources Management (GHRM) is an aspect of Environmental Management that has not been explored sufficient yet (Renwick, Redman and Maguire, 2013). GHRM means to align the HR practices such as recruitment, selection, training, performance assessment and rewards, to a company’s green management objectives (Renwick et al., 2008; Jackson et al., 2011; Teixeira and Jabbour, 2012). The term Green HR is used to the contribution of people management practices towards wider corporate

environmental agenda (Pillai and Sivathanu, 2014).There is a positive relationship between the GHRM practices and the ecological performance of the corporation’s (Daily, Bishop and Massoud, 2012). Since employees are the most valuable asset of the organization and act as players for organization success; organizations should ensure that employees are motivated and committed towards organizational goals. Currently organizations in order to compete successfully needs to align corporate goals with environmental goals. For achieving effective organizational environmental performance employees must be committed and motivated towards these goals. This study discusses that under highly environmental aware society, organizations in order to sustain successfully motivation of employees is considerably important and there must be some mechanisms in place through which employees could be committed towards attaining environmental goals.

(DOI: dx.doi.org/14.9831/1444-8939.2014/2-4/MAGNT.34)

MAGNT Research Report (ISSN. 1444-8939) For an organization to strongly support environmental management system, motivation of employees is of great significance. Researchers discuss that employees must be motivated, empowered and environmentally aware of greening in order to carry out green management initiatives (Suhaimi and Sudin, 2011). Based on the previous studies factors like administration commitment, worker empowerment, plunder, and comment and review stood out as key elements in motivating employees for enhanced environmental performance (Govindarajulu and Daily, 2004). Motivating employees for better participation in environmental development efforts may also need service teams. The use of team-based employee initiatives (EI) programs is mostly popular in built-up organizations where developed strategies, spirited pressures, and higher technology require shop-floor employees to take more responsibility towards making the organizations environment green (Magjuka and Baldwin, 1991). Lack of motivation may outcome in employees who are reluctant to participate in environmental management. Employees planning and activities are the key to toxic waste management if they are strongly motivated towards environmental management (Denton, 1999). Employees motivated towards green environmental management take on green HR practices which in long run will contribute to the effective accomplishment of environmental management system (Jackson, Renwick, D.W.S, Jabbour and Camen, 2011). Environmental Management (EM) approaches depend upon still development via employee training (Brio and Junquera, 2007) but lacking employees’ motivation towards environmental objectives, organizations cannot address green issues significantly. The purpose of this study is to address the issue of employees’ motivation towards environmental performances via Performance assessment, reward practices and supervisory behaviors.

Vol.2 (4). PP: 267-278 2. Literature review In the twenty first century organizations are taking a more strategic approach to environmental management (Daily, 2004). Green human Resource management is referred as alignment of HRM practices with the business’s environmental goals (Jabbour, 2013).Incorporating Human resources with EM, organizations can address the environmental issues significantly. Green HR practices result in greater efficiencies and build an atmosphere of better employee engagement which helps corporation to operate in an environmentally sustainable business practices (Meily and Susanti, 2013).Firms are not making use of full range of GHRM practices, and this may result in limiting their effectiveness in attempts to improve EM (Renwick, 2013). Following factors are empirically investigated. 2.1 Organizational Performance

Environmental

Organizational environmental performance refers to performing activities in a way that positively affect the environment. Environmental management basically has two major objectives; firstly, to control the level of pollution in an environment, and secondly, to upgrade the environment to an acceptable level (Yasamis, 2011). The increase in concerns of protecting the environment is forcing the companies to adopt the environmental management practices (Boiral, 2006; Gonza´ lez-Benito and Gonza´ lez- Benito, 2006). One of the arguments given by many researchers that favor the taking up of environmental management activities is that it would give the company a competitive advantage (Melynk, 2005). According to Edward (2004), there are four reasons why organizations should adopt environmental management practices: ethical; as it’s their duty to protect the world, economic; conserving resources and energy means saving cost, legal to avoid the governmental problems, commercial; a large number of companies are taking environmental management into account.


MAGNT Research Report (ISSN. 1444-8939) Wilkinson (2001) states that Human Resources Department is very important for environmental management. The Human Resource management support is supposed to be most essential for adopting the EM activities (Jackson et al., 2011; Govindarajulu and Daily, 2004; Daily and Huang, 2001; Jabbour and Santos, 2008; Sarkis et al., 2010). Therefore in this regard carefully recruiting and selecting the employees, giving them performance based rewards and full fledge training programs are thought-out as a strong force for motivating employees and such programs enhance their knowledge about environmental management. ( Renwick, 2008; Sudin, 2011). Some of the big corporations of the world and particularly big companies in India have set up commercially extensive environmental performance standards to measure how much efficiently the companies are working for greening the environment. The standards include proper on site use of material, appropriate management of wastage stock, conducting environmental audits, diminution of waste material. Furthermore standards include developing such Information system that proves to be helpful in greening the environment i.e. green systems and audits for collecting useful data on managerial performance towards EM. (Mandip, 2012). 2.2 Rewards Rewards play a crucial role in motivating the employees and help in identifying their significant performance in job towards environmental management. (Danish and Usman, 2010). The goal of organizations for using reward systems is to accomplish, keep and motivate employees for performing well and realizing the importance of eco-initiatives. (Kaplan, 2005; Lindstrom, 2011).Well designed reward system could motivate the employees to be engaged in environmental endeavors. There is little literature available that shows that reward system could motivate the employees to be indulged in environmental activities (Laabs, 1992; Patton and Daley, 1998).Employees are interested in both

Vol.2 (4). PP: 267-278 monetary and non monetary rewards. Recognition programs, profit sharing programs, increase in pay, benefits and incentives, Awards and suggestion programs could be used to reward the employees for good environmental performances (Patten and Daley, 1998; Marks, 2001). The use of environmental rewards and recognition (daily praise and company awards) have shown that they have considerable impact on employee motivation to get involved in eco-initiatives (Rentwick et al, 2013). Nowadays organizations are taking initiatives towards environmental performance by practicing reward systems for improving EM performance (Renwick, Redman and Maguire, 2013). Reward system demonstrates respect, self esteem and recognition for the employees as it motivates them and triggers a participative problem solving EM (Jabbour and Santos, 2008). Monetary Rewards seem to be the strongest pushing force for inspiring employees to play their part in eco initiative efforts. Research shows that employees’ satisfaction and work motivation are strongly affected by monetary rewards (Lawler, 1973; Govindarajulu and Dairy, 2004). Some employees get more motivated by appreciation from supervisors and recognition (non monetary rewards) than other monetary factors. There are anecdotal evidences explaining that most of the businesses are taking initiatives for beneficial environmental practices through acknowledgment. For example in some of the countries like USA employees are being rewarded for their innovative ideas and other beneficial environmental activities at different levels of organizations. Activities include reducing waste, proper recycling, attending green events and afterwards performing community services (Mandip, 2012). Based on the literature, the proposed hypothesis is as follows: H1 Monetary and non-monetary rewards significantly enhance employee motivation toward eco-initiatives.



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2.3 Assessment According to Nasud (1999), performance assessment is thought of as a crucial factor in managing human capital of an organization and this criterion is the most important tool that helps in bringing out an employee’s extent of performance. In order to keep the employees motivated towards the environmental management of an organization it is essential that the way the employees performance be assessed. Govindrajulu and Daily (2004) suggest that employees must be provided with feedback regarding their efforts for improving the environment or else their efforts may come to a standstill. The feedback may be provided to employees only if the organization has a good performance assessment structure (Govindrajulu and Daily, 2004). Chinander (2001) also emphasizes that performance assessment of the employees ensures that the employees are conscious about their tasks and such consciousness leads to improved performance regarding EM. Employees will do better if they receive feedback on how well they are making progress towards their environmental objectives since feedback helps recognize divergences between what they have done and what they want to do. Verbal as well as written feedback may motivate the employees to be engaged in environmental responsibilities (Govindarajulu and Daily, 2004).

2.4 Supervisory Behavior According to Ramus and Steger’s (2000) supervisor’s supporting behaviors are crucial for motivating employee towards environmental management. Results of their study indicated that supervisor’s behavior supporting environmental management motivated employees towards eco initiative. Their study also discussed that supervisor supportive behavior promotes environmental innovation. Supervisors if behave fairly their behavior leads to proficiency building in employees. Communication between top to lower management should be flattened so that environmental goals are properly communicated to all the management levels and these factors altogether has a significant effect on employees own willingness to participate in eco initiatives (Ramus and Steger, 2000). An empirical study conducted by Ramus (2001) showed that supervisors who incorporated daily praises in their organizations were graded as amongst the most significant factor for employees’ environmental initiatives.

An example of performance assessment program is, asking employees to come up with innovative green ideas, after having brainstormed the ideas and includes them in objectives. When the objectives pertaining to green ideas have been achieved, make it a criterion for the assessment of performance of employees (Mandip, 2012). Performance assessment concerns the need for managers to monitor EM performance in order to wider environmental protective behaviors (Milliman and Clair, 1996; Renwick, Redman and Maguire, 2013). This research hence proposes the following.

2.5 Management Commitment Management commitment means creating human energy that actually activates human mind since activation of energy and mind is a source of implementing green ideas and without these, green goals cannot be accomplished (Arygris, 1998). Studies have suggested that employees participate more willingly when their supervisors adopt democratic style of decision making towards environmental performance, showing management is strongly committed (Ramus, 2001; Govindarajulu and Daily, 2004). Management commitment allows employees to take time for experimentation towards environmental performance which would ultimately increase their motivation towards

H2

Performance assessment significantly enhances employees’ motivation toward organizations eco-initiatives.

The proposed hypothesis therefore is as follows. H3


Supervisory behavior has a positive impact on employee motivation towards eco-initiatives.

MAGNT Research Report (ISSN. 1444-8939) EM (Woods, 1993; Govindarajulu and Daily, 2004).The following hypothesis is proposed. H4

Management commitment significantly moderates the positive impact of supervisory behavior with employee motivation towards eco-initiatives.

2.6 Environmental Employees

Training

of

the

The agenda concerning what basically motivates employees towards organizational positive activities has become of great importance since the beginning of the industrial revolution (Haslam, Powell and Turner, 2000). According to Baron (1991) motivation is considered to be a fundamental concern of the modern organizational world of research. Motivating employees for environmental management not only makes the company focus on negative environmental affects but also guarantees that responsibility has been allotted for acquiring credible environmental reputation ( Morrow and Rondinelli, 2002).If employees are motivated toward eco-initiatives but they don’t have sufficient skills and competencies to perform green activities, they wouldn’t be able to significantly increase the organizational environmental performance. Training is considered to have a positive impact on organization’s environmental performance since training performs a basic role to teach employees new skills to work in an innovative environment that will positively influence the environmental performance of the organization (Cole, 2008). As stated by the experts environmental training serves two main purposes. First properly educate the employees with the company’s environmental policies, secondly by altering the activities of employees through training to built a more deliberate and stable relationship of employees towards environment ( Sammalisto and Brorson, 2008). Following the practices of green environmental training, benefits the company to attain the cost minimization and corporate image (Marshall and Mayer, 1992).

Vol.2 (4). PP: 267-278 Nowadays progress in environmental management is seen to be people oriented and it is factual that skills of employees are improved through thorough training (Brio, 2007).Based on this, the research proposes the following hypothesis. H5

Environmental training of employees mediates between employee motivation towards eco-initiatives and environmental performance of organization. 3. Conceptual Framework

4. Research Design 4.1 Instrument Development The questionnaire was developed through extensive literature review and with the help of academic experts. Seven variables were shown in model including one moderator and mediating variable i.e. rewards, performance assessment, supervisory behavior, employee motivation towards eco-initiatives, management commitment, environmental training and organizational environmental performance. With the help of domain experts’ content and face validity was done and questionnaire was tailored regarding recommendations given by them. Instrument was finalized after pilot testing. At final stage, questionnaire comprised of 46 items including three demographic


MAGNT Research Report (ISSN. 1444-8939) questions. Except demographics, all items were measured on seven point likert scale (1=Strongly Disagree, 2= Moderately disagree, 3=Disagree, 4= Neutral, 5= Agree, 6= Moderately Agree, 7=Strongly Agree). Rewards is measured with six items, performance assessment with six, supervisory behavior with five, management commitment with seven, employee motivation towards ecoinitiatives with nine, environmental training with six and organizational environmental performance with four items. 4.2

Data Collection

The questionnaires were distributed among 300 respondents and out of them 178 were obtained; as a result response rate was 59.3%. Fewer responses were obtained due to unavailability of primary data as rare organizations are employing GHRM practices. Data was collected from three firms who were employing green practices. Convenient sampling was used for this study. The demographics of employees are given in Appendix. 5. Data Analysis and Result 5.1 Reliability Cronbach’s alpha is applied to check the internal consistency of the items for a particular construct. The intimated value of Cronbach’s alpha should be more than 0.70 but if the value is greater than 0.60 it would also be considered reasonably good (Nunnally,1978). In Table 1 values of all variables are greater than 0.80 which shows exceptional reliability among items of a particular construct except employee motivation and environmental training that is .779 and .754.

Table 1 Reliability consistency) Serial name 1

analysis

Variable name R

Vol.2 (4). PP: 267-278 2 3 4 5 6 7

PA MC SB EM ET OEP

0.894 0.862 0.895 0.779 0.754 0.868

5.2 Exploratory Factor Analysis Exploratory factor analysis was carried out to determine either all items are properly loaded or not. Before formally conducting EFA, two assumptions of factor analysis must be fulfilled i.e. KMO and Bartlet test. The value of KMO should be greater than 0.60 and Bartlett test’s value must be significant at 5% (Pallant, 2001). Loading scores of each item must be greater than 0.40. Factor analysis was carried out through extraction method of principal component analysis with verimax rotation. Factors are loaded on the basis of Eigen values. Forty two items of seven constructs are presented in the table 2. Loading scores of all items are greater than suggested value. The explained variance from all the given components is more than 0.50 which is sensibly good. These results are on the basis of fixed number of values. Table2 Factor analysis

Ser ial no 1 2 3 4 5 6 7 8 (Internal 9 VE Cronbach’s K M alpha O 0.899 Brt


R

PA

M C

SB

E M

ET

OE P

.82 .83 .83 .77 .80 .83

.83 .83 .84 .81 .81 .74

.82 .85 .81 .76 .76

.78 .80 .79 .79 .77 .78 .77

.80 .78 .77 .78 .71 .79

.90 .88 .87

65 65 65. 0.9 0.8 0.8 1 9 5 no of items .006 .00 .00

61 0.9 1

.83 .83 .77 .82 .79 .80 .78 .80 59. 0.9 5

53. 0.8 9

79. 0.7 3

.00

.00

.00

.00

6 5 7 9 7 3

MAGNT Research Report (ISSN. 1444-8939) 5.3 Correlation Analysis Correlation tells the strength and direction of the relationship. The relationship of PA with R is strongly positive and all other variables are moderately positive with each other (See table 3). All variables are significantly correlated with each other. Table 3 Correlation Analysis

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The below analysis shown in Table 5 is regression with the impact of moderator. Management commitment is significantly moderating the impact of supervisory behavior on EM. According to given results MC is significantly moderating the impact of SB on EM (β =0.112, p-value < 0.05) that supports the fourth hypothesis of this study.

Varia R PA MC SB EM ET OEP bles R 1 PA .88 1 MC .76 .80 1 SB .80 .82 .80 1 Table 5 EM .77 .75 .75 .76 1 Regression Analysis ET .75 .79 .78 .76 .75 1 OEP .74 .76 .79 .80 .75 .74 1 Variabl tpHypothes All results are significant at 1% e Β S. valu valu is 5.4 Regression Analysis E e e The regression model was run in this study in Cons. 1.6 .25 6.34 .000 three different phases i.e. without the impact 2 of moderation, with the impact of moderation R .32 .10 3.25 .001 Accepted and then the mediation impact. In the first PA .09 .11 .85 .397 Rejected phase the regression test without the impact of MCSB .11 .02 5.2 .000 Accepted moderation was run on SPSS 19.00 as shown below in the table 5. R is significantly The three-equation test of Baron and Kenny enhancing EM that supports the first (1986) is used, with the results shown in Table hypothesis (β = 0.343, p-value < 0.05). PA is 6. Step 1 of the approach requires that the not significantly enhancing the EM (β =0.159, independent variable (Employee motivation) p-value > 0.05). As per the results the second statistically affects the mediating variable hypothesis is not supported. EM is (employee training). This condition is met, as significantly enhanced by SB (β =0.417, pshown in Table 6. Step 2 of the approach value > 0.05) that accept the third hypothesis requires that the independent variable directly of this study. and statistically affects organizational environmental performance, the dependent Table 3 variable. This condition is met as shown in Regression Analysis Table 6. Step 3 allows both the mediator and independent variables to influence the Variabl tpHypothes dependent variable and with an emphasis on e Β S.E valu valu is the mediator variable (employee training) that e e statistically influences the dependent variable. Cons. .58 .24 2.35 .020 This condition is met as shown in Table 6. R .34 .10 3.39 .001 Accepted Step 4 compares these conditions and third PA .16 .11 1.43 .154 Rejected step of regression. The requirement is that the SB .42 .09 4.61 .000 Accepted influence of the independent variable declines 7 0 substantially. (DOI: dx.doi.org/14.9831/1444-8939.2014/2-4/MAGNT.34)

MAGNT Research Report (ISSN. 1444-8939) This condition is met because there is a halving of the beta coefficients for independent variable; employee motivation beta drops from 0.734 to 0.437. All four conditions are met, indicating that employee training mediates the influence of employee motivation and organizational environmental performance.

Three-equation test of Baron Kenny Step 1 Environmental Motivation

training

=

.694

Step 2 Organizational Environmental =.734 Employees Motivation

Employees

Performance

Step 3 Organizational Environmental Performance =.694 Employees Motivation + .734 Employees Motivation 6. Discussion First hypothesis of the study is accepted i.e. rewards significantly impact the employees motivation towards eco-initiatives. According to the literature it is supported that with the good reward system the employees motivation can be enhanced towards eco-initiatives. To increase performance of employees and their satisfaction level, they should be recognized in terms of monetary and non-monetary rewards. The more the reward system will be better; the employees will be more motivated to take ecoinitiatives and more inclined towards the betterment of the OEP. The second hypothesis of this study is Performance Assessment insignificantly impacts EM. There is no significant influence of green performance assessment on employees motivation towards eco-initiatives. Motivation level of employees will be decreased if performance will not be assessed in a better way. If employees are not motivated the environmental performance of the organization will decrease. The in-efficient performance assessment is due to the biased decisions of the managers or the immediate supervisors. It effectively discriminates between the good and the poor performers (NitinNohria, 2008). If supervisors are not

Vol.2 (4). PP: 267-278 assessing the performance effectively, the good performers will be demotivated as they are not getting the distinction. This results in less motivation and they will not take the ecoinitiatives because they are not getting for what they have done in a better way. The third hypothesis supervisory behavior significantly impacts the employees motivation. It is found that the better the behavior of the immediate supervisor with the employees, the more the employees will be motivated. The association between potency of guidance from employees' supervisors and organizations regarding protection and betterment of the natural environment has a direct impact on the motivation of employees to take environmental initiatives ( Steger, 2013). With a better support of the immediate supervisor, the employees will be more able to perform in an effective manner and with the better performance; the motivation level of the employees can be enhanced. Prior studies have found that the supervisory behavior and their direct contact with the employees are positively associated with the employees’ motivation and performance of the employees . Fourth hypothesis of this study is the moderating impact of MC on SB and then on EM. With the moderating impact of management commitment on supervisors’ behavior the hypothesis still gives the positive results and is still accepted. If the management is not committed for betterment of the environment, supervisory behavior will not influence positively towards employee motivation since supervisor plays a key role to enhance the performance of the employees as he/she is the disseminator of the management orders. The fifth hypothesis of this study is the mediating impact of environmental training between employees motivation towards organizational environmental performance and showed the significant results and is partially mediating the influence of employee’s motivation. If the employees are more motivated and encouraged for adopting the best practices to make the environment green, more will be the environmental performance of the organization. Better know how of the employees regarding environmental practices for the sustainability of the environment and



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the environmental standards, better will be organization’s environmental performance. Literature has suggested that better environmental performance helps the organization to go green. The motivated workforce means the better organizational environmental performance.

motivated towards organizational environmental performance, training would be required in order to implement those policies. Organizational environmental performance would not be achieved significantly, if employees are motivated towards environmental acts but have no knowledge about implementing GHRM practices or organization doesn’t have environmental policies.

7. Implications Effective implementation of GHRM practices addresses environmental issues of organizations successfully. With the help of this study, managers can employ GHRM practices effectively in organizations. This research can give direction to the managers that how successfully employees could be motivated to address environmental issues significantly. In order to attain environmental performance, it is vital for organizations to be supported by motivated members of staff. Consequently, motivated staff ready to go the extra mile could be a source of competitive advantage for organizations engaged in environmental protection. All staff should be engaged from top management to frontline employees in addressing environmental issues. If the firm wishes not to harm the natural environment, it is important to involve people by taking on GHRM practices at strategic level. Firms may arrange specialized training programs to educate employees regarding environmental concerns. This study also provides novel areas of research for researchers who want to work in context of under developed countries. 8. Conclusion This study is a first step towards recognizing the validated relationship between employees motivation toward eco-initiatives through rewards, performance assessment and supervisory behavior and organizational environmental performance. Using a sample of employees working in environmental conscious companies, it is revealed that employees are more motivated towards EM through rewards and supervisor’s supportive behavior. In addition, employees are motivated if management is also committed towards the implementation of environmental policies in the organization. Moreover, this study has shown that even if the employees are

9. Limitations and Future Research The only limitation to this study is insufficient availability of primary data as rare organizations are practicing Green HRM due to lack of information about it. Profuse opportunities are available to extend this research further. This study describes only three factors for Employee motivation i.e. rewards, performance assessment and supervisory behavior. Further factors can also be investigated like organization green culture, environment friendly solutions etc. Additionally, it is essential that practitioners and researches keep on observing ways that employees are motivated and committed to improve environmental conditions. Examining why the companies are hesitant to use reward management in incentivizing employee involvement in Environmental management would be a useful attempt. Reasons can be explored that why top management does not show commitment towards implementing GHRM practices in their organizations. Comparison of Green HR practices across developed and under-developed countries can also be scrutinized through future research. References 1.

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