GREEN HUMAN RESOURCE MANAGEMENT GHRM AND ENVIRONMENTAL SUSTAINABILITY A CASE STUDY OF THE BANKING INDUSTRY OF PAKISTAN

http://dx.doi.org/10.31703/ger.2022(VII-I).09      10.31703/ger.2022(VII-I).09      Published : Mar 2022
Authored by : Mahreen Maqsood , Waseem Shahid Malik , Muhammad Imran Khan

09 Pages : 102-116

    Abstract:

    The sustainability of the world is today threatened by the carelessness in actions of humans and organisations towards the environment. The objective of this study is to find out the role of those HR practices that lead to environmental sustainability. For this purpose, the study takes the banking sector for its evaluation. The main variables selected by this study, which are tested for their impact on environmental sustainability, are green recruitment, green training and development, green reward management system, and green performance management practice. The study selects a random sample of 122 respondents from different banks. ANOVA is used to test the relationship between dependent and independent variables. Results show that all the independent variables significantly affect the dependent variable in the banking industry. The study recommends banks adopt GHRM practices, including job rotation, conducting training and workshops, and setting green targets for everyone.

    Key Words:

    GHRM, Environmental Sustainability, Green Recruitment, Green Performance Management.

    Introduction

    The sustainability of the world is today threatened by the carelessness in actions of humans and organisations towards the environment. Therefore, Green Human Resource Management (GHRM) has received gigantic heed among scholars, academicians, and business organisations due to the importance of the problem. GHRM is becoming a key indicator for business strategies of significant organisations, where the HR department plays the most important and active role, hence proving it to be a valuable asset to any organisation. GHRM has potentially gained a relatively vital position in various research areas towards achieving the sustainable Environmental Program (EP). Various organisations see the expanding role of HRM beyond the traditional recruitment and training of the employees. In recent years, HRM has been directly involved in developing, implementing, and utilising the GHRM practices and measures to pursue the sustainability goal and environmental performance of the organisations. To escalate the payoff, organisations are scrutinising as well as enduring the corporate social liabilities. Due to this reason, multiple organisations have understood and identified the green program and how it encourages the social liabilities and responsibilities of the employees in a workplace. 

    In the fast-growing era, it is an irrefutable fact that the potential of the people is the timbre to determine benefits. To take fruitful payoff, the organisations are creating cutthroat ease. As per the study of Arulrajah, Opatha, and Nawaratne (2015), it appears that a significant number of organisations are practising the GHRM in a global context. Exploring as well as synthesising these GHRM practices which are implemented in the organisational setups are being practised by the businesses. Various organisations are contributing significantly to the field of HRM both academically as well as practically. The study also mentioned how the GHRM is one of the most rapidly emerging domains of research in the recent studies for organisational performance and sustainability since the 1990s. 

    At the present time, rich countries, as well as undeveloped nations, share a common concern over the growing significance of environmental challenges such as sustainable development (Sharma and Gupta, 2015). The industrialisation has led to a huge increase in environmental degradation; this is its result (Jabbour and Santos, 2008). GHRM, entail the system and policies that enable the employees of an organisation to go green, resulting in the benefits of the industrial, natural, social environment, and the business, and is also proved as the Magna Carta for environmentalism. Such policies involve reducing the contamination of carbon through less paper printing, job sharing, car sharing, telecommuting, remote interviews, virtual conferences, etc. As a consequence, two key components of GHRM have commonly included: environmentally friendly HR practices and intellectual property protection (Mandip, 2012). Over the last several decades, the majority of industrialised countries have adopted GHRM best practices in their businesses. Countries like Germany have already used GHRM in a practical way, and they've supplied several examples. Some organisations, such as Siemens, Bayer, Mannesmann, and BASF, have taken advantage of and adopted green practices, environmentally friendly activities, and sustainable policies in an effort to recruit top-notch employees.— BASF and Mannesmann, among others, have followed suit. A similar approach has been used by Rover Group, a British vehicle manufacturing company, which has made environmental commitments a requirement for all employment positions and has integrated these duties into each and every job description (Aranganathan, 2018). 'Green teams' were set up at Kent County Council in the UK, a local authority, according to Lather and Goyal (2012), to generate entrepreneurial venture ideas, explore issues, improve learning experiences, identify conflicts and focus on actions that help improve the understanding and learning of why, how to pursue the best environmental options practically possible, what to pursue, when, and where to pursue them. "Green teams" were entrusted with furthering understanding of why and how things work. There is still a long way to go until green performance baseline measurements are defined in the United States and most other countries. There is still a lot of work to be done here. In order to compare environmental management performance across multiple facilities and units and to set objectives for supervisors and employees under their supervision, corporations will use these baselines and metrics (e.g., the assembly and manufacturing staff). In order to make an organisation's environmental management objectives and efforts apparent to all workers, it is becoming more necessary to build HR systems in performance assessments and the reward management system. This is a need that will only become more pressing in the years to come (Milliman & Clair, 2010). Working for an environmentally conscious company is a top priority for 72 per cent of women and 64 per cent of men, according to a poll conducted in 2007. Only 4.92 per cent of all students and entry-level professionals, on the other hand, desire to work in an environmentally friendly and sustainable setting. More than eighty per cent of young people who looked for jobs said they had a positive outlook and strongly preferred careers that had a positive impact on the environment. Another survey, this one conducted in the United Kingdom, lends credence to this view. The survey depicted the high achieving graduates judging the environmental performance as well as the sustainable reputation of a company as one of the factors to consider and decide while applying for the job (Renwick et al., 1996). According to a poll conducted in the United Kingdom (CIPD), over half of the respondents prefer environmental credentials when considering whether or not to join a firm like Boots, which promotes and observes the 'green job applicant' as being important in the particular area (Brockett, 2009). East Asian countries, particularly China, have seen significant increases in the number of green jobs as a result of green government initiatives. The volume and growth of green jobs are enormously boosted by green professions. In the solar water heater industry, for example, 96% of the global workforce is employed by the industry's 600,000 employees (Muster & Schrader, 2011). 

    Human resource management experts and practitioners have also embraced the green trend during the last several years (Prathima and Misra, 2013). Human resources are seen as one of the most critical players in the quest to achieve long-term growth inside the organisation (Paauwe and Boselie, 2005; Schuler and Jackson, 2014). HRM has played a critical role in the development of overall organisational culture, strategy, and structure since its inception, in addition to the formulation of HR policies (Paauwe and Boselie, 2005; Schuler and Jackson, 2014). In the words of Mandip (2012), Due to the fact that many researchers (including Daily and Huang, 2001; Jackson et al., 2011; Renwick et al., 2013) realised the significance of this relationship, they turned their research efforts toward exploring and elaborating upon it. They've also emphasised how important it is for workers to participate in environmentally friendly activities while they're at work. To define a practice that combines environmental management with human resources, the phrase "green HRM" is often used (GHRM). GHRM's efforts are aimed at helping firms improve their environmental performance by increasing positive employee involvement and dedication to both the internal and external environment (EP). The mission of GHRM is to assist companies in becoming more environmentally conscious (Renwick et al., 2008; Jackson et al., 2011).

    In addition, the Pakistani government is now developing an economic plan based on environmentally friendly aims and development assistance. For example, the government is working to address issues like poverty, inequality, unemployment, and other forms of environmental degradation and variability, as well as infrastructural gaps and food shortages by implementing this policy reform. What we've mentioned so far should not come as a surprise that green Human Resource Management will play an important role in future attempts to overcome environmental challenges. Employees' acquaintance with green systems will be increased via the adoption of green HR policies and practices, as well as through the delivery of relevant training and awareness programmes. These practices involve changes in the overall organisational climate as well as culture and help reduce waste management, reduction in carbon expulsion, pollution, etc. It leads to maximum utilisation of the resources by the employees of any organisation. Moreover, it also increases the level of awareness in the employees regarding energy consumption and reduction in carbon emission. It will also inspire and encourage the employees to use eco-friendly products. 

    Problem Statement

    Pakistan Environmental Protection Authority has reported several issues with environmental degradation (GOP, 2017). Human resources are the front-line runners and are responsible for the companies and employees in the organisations to follow the green guidelines and have the mandate to start the best practices to bring everyone on the same page. Many businesses will benefit from this favourable shift toward a greener HR strategy, including but not limited to lower recruitment and retention expenses and an increased ability to attract fresh talent (Muster & Schrader, 2011). The development, modification, and implementation of HRM processes based on the sustainability idea should also focus on supporting the long-term profitability of organisations via this connection between HRM and environmental sustainability. Every sector and organisation that depends on natural resources has some kind of connection to the environment, and banking is no exception. Banking, for example, is an example of a business that directly contributes to carbon emissions in the environment. Paper, lights, power, air conditioning and heating, technological equipment, and a host of other resources are all examples of this kind of waste. It is true that banks emit carbon dioxide into the atmosphere, even if their emissions are relatively low when compared to those of other carbon-sensitive businesses, such as oil and gas, steel, and other industrial industries. Many firms rely on long-term financing and investment from financial institutions like banks, which leads to environmental damage. The external environment has a direct influence on banks because of this. Because of this, it is critical to have a thorough awareness of the role that environmentally friendly and sustainable practices play in the financial sector. 

    Green HRM, short for "human resource management that minimises its environmental effect," is one aspect of environmental management that should be emphasised. Several studies have been conducted across the globe to examine the impact of green human resources on the baking industry's environmental sustainability. Pakistan's banking sector, on the other hand, has received just a few studies and research initiatives. This gap in understanding is being filled by fresh studies. GHRM (good hazard risk management) practices have been shown to have a significant influence on the environmental viability of several Pakistani banks. In other countries, green human resource management (GHRM) has been studied extensively; however, in Pakistan, the concept of GHRM is still a relatively new phenomenon. The study on the Green HRM practices for the banking sector in the Pakistani context should be further explored to shed light on the important sustainability issues of the industry. The studies should also be given significance because, in the current world, the banks will have to adopt these practices eventually. 

    Research Objectives

    The overall goal of this study is to undertake an inquiry utilising empirical data into the effect that GHRM practices have on the environmental sustainability of the banking business in Pakistan. The following is a list of the specific objectives that the study intends to fulfil as a result of its findings:

    i. To analyse the impact of green recruitment and selection practices on environmental sustainability in the banking industry of Pakistan. 

    ii. To analyse the green training and development practice impact on the environmental sustainability in the banking industry.

    iii. To analyse the impact on the banking industry's environmental sustainability of the use of green reward management practices. 

    iv. To determine the extent to which environmentally friendly performance management practices have an impact on the sustainability of the environment in banks. 

    Research Hypotheses

    In line with the stated objectives, the following hypotheses will be tested:

    H1: The banking industry's use of green recruiting and selection processes has no significant impact on the industry's environmental sustainability. 

    H2:  Development practices and Green training have no significant influence on environmental sustainability.

    H3: Banks' use of green reward management practices has no significant impact on environmental sustainability.  

    H4: Banks' green performance management practices have no significant impact on environmental sustainability.

    Literature Review

    This part discusses the different contemporary theories that explain the understanding of the green recruitment practice, green training and development, green reward and compensation, and green performance management practice leading to the development of the conceptual framework guiding this study. It discusses the different empirical studies conducted in the past in the context of different countries. 

    Theoretical Review

    Creswell (2003) argued that a theory is a conventional of interrelated concepts, descriptions, and propositions that extant a systematised opinion of occurrences by asserting relationships between variables, with the tenacity of elucidation and envisaging occurrences. According to Cooper and Schindler (2008), each theory adds a new block. They all are interconnected to each other. The theoretical foundation of the current research is grounded on various theories like the Resource-Based View theory, the social exchange theory, ISO 14001 systems model, and finally, the best Practice Human Resource Management Theory. 

    The Resource-Based View (RBV)

    This theory is based on the idea first presented by the economist Edith Penrose. According to this theory, all of the resources of the organisation, including humans, systems, and partners, are pooled into methods of working which are exceptional, matchless, appreciated, and non-substitutable so that they add core competencies. (Tyson & York, 2006). The main purpose of the HR systems in any organisation is to create a certain pool of those skilled people that strategically help in achieving organisational goals (Wright et al.2001). The Resource-Based Method emphasises core internal resources, which are considered the main factor for sustaining competitive advantage. 

    RBV in HRM

    Just like in the manufacturing industry, the RBV theory has had a significant impact on human resource management as well. With the introduction of pollution prevention laws and regulations leading the companies to reduce pollution and emission of toxic chemicals and waste material, the companies also had to train their existing resources and hire new resources with sustainability and pollution prevention strategies in mind. While the RBV theory served its purpose in enabling corporations to reduce the waste emission from an organisation, it also helped the companies in developing sustainable workforce management strategies, hence leading to green human resource management. 

    ISO 14001 Environmental Management System Model

    ISO 14001 is an international standard that considers organisation structure as an integral part of the environmental management system. EMS also plays an important role in creating procedures, processes, activities, and resources for developing, reviewing, and implanting environmental policies. Gupta (2003) argued that EMS builds amalgamation amongst different environmental issues and organisation policies by placing the principles which effort to hunt for continuous improvement in the link between the natural environment and the company. The study proclaims that EMS is a managerial practice that necessitates an organisation to recognise, quantify, and control its environmental impacts. 

    Social Exchange Theory

    SET was first proposed by Blau in 1964; the theory has gained a lot of importance in other disciplines like anthropology, psychology, social psychology, and sociology. Blau (1964) acknowledged two classes of exchange relationships: (a) social and (b) economic. Social exchanges involve undetermined compulsions like expecting a favour in return for a favour. Social exchange is based on mutual trust as the timing of when the favour will be returned unknown. On the other side, Emerson (1981) argued that trust, obligations, personal attachment, and commitment are not part of the economic exchange relationship. The economic exchange relationship is not long-term but represents discrete, financially oriented interactions (Shore et al., 2006).  

    Social Exchange theory and Reward Management System

    The concepts and principles of social exchange (Blau, 1964), as well as the norm of reciprocity (Gouldner, 1960), have been used by organisational researchers for a long time now to describe employee behaviour towards motivational gains. It also focuses on the formation of a positive attitude in the employees (e.g., Etzioni, 1961; Levinson, 1965; March & Simon, 1958). Recently, most of these concepts are already in use to explain the individual's expression of loyalty towards the organisation (e.g., Scholl, 1981; Eisenberger, Huntington, Hutchison, & Sowa, 1986) as well as to engage in the behaviours that are typically formally rewarded or contractually enforceable (e.g., Organ, 1988; Rousseau, 1989). A Reward system in management is a form of social exchange between the employees and the certain organisation the employees are a part of. Economic and social exchange, however, is different in regards to the resources exchanged, reciprocity, strength, and type of obligations, as well as the quality of relationship developed over time (Shore, Bommer, Rao & Seo, 2009). The economic exchange involves a defined provision of the interactions between the parties and is predominated by extrinsic rewards, particularly in terms of material rewards. Social exchange is also defined by the indeterminate personal obligations and state of trust and both intrinsic as well as extrinsic rewards (Blau, 1994). 

    Best Practice Human Resource Management Theory

    This theory is considered the theft model of HRM. Johnson (2000) argued that the best practices of HRM are valuing and rewarding employee performance. Huselid (1995) established 13 work characteristics of high performance, which he believed are considered the best practices of the HRM. Building on 13 best practices, he bordered seven best practices includes, including employment security, self-managed teams, selective hiring of the new personnel, extensive training, decentralised and high compensation of employees as compared to their performance, and reduction in the barriers as well as extensive sharing of the financial and performance knowledge. Meanwhile, Guest (1999) has explained the origin of various universal claims that are expressed openly about the connection between the HRM strategies under organisational performance. He also argued that there are some general remedies to HRM interference that can be implemented within the setup of any organisation, irrespective of its context as well as priorities, with the likelihood of depicting a similar level of consequences and responsibilities. 

    Green Recruitment

     In recent times the importance of environmental issues and sustainable development has increased both in developed and developing nations. Growing concern for a global environment and the development of international standards for environmental management have created a need for businesses to adopt “green practices” (Sharma & Gupta, 2014). Organisations are trying to tap every bit of opportunity, wanting to look different and make a good impression, so that the right candidates with an environment-friendly bent of mind apply for jobs. Also, the younger generation is becoming more and more concerned about the environment and its protection, as they have been taught this way since childhood. Though the concept is not that popular, it is slowly catching up with organisations going "green in recruitment". Organisations like Google and Timberland have made concerted efforts to portray themselves as environment-friendly organisations that support environmental issues (Kiruthigaa,& Viswanathan, 2014). According to research findings by Wehrmeyer 1996 and Oates, 1996, in the UK, employees' and job seekers' decision to join a particular job or not heavily depends on the organisational reputation in terms of environmental policies and environmental protection. According to research findings of The Chartered Institute of Personnel and Development (CIPD), organisations can attract and sustain reputed and good profile employees by marketing them as environmental protection organisations and environmentally sustainable organisations (CIPD, 2007). The environmental performance of the organisation is affected by the recruitment of green employees and following the green recruitment process in recruitment. Human resources must be made green first in the organisations to show high environmental performance.  

    Some Examples of Green Recruitment Mc Donald

    Mc Donald's adopts green recruiting in many ways. The company gives environmental commitment to head-hunters, recruiting agencies, and prospective candidates. Job candidates are provided with pre-hand information in the form of pamphlets and brochures through mail highlighting McDonald's environmentally friendly initiatives before conducting the interviews. Candidates are encouraged to read and download the information available on the company website that highlights the company's commitment to green issues. One such footage throws light on the coming together of McDonald's and activist group Greenpeace to fight the issue of deforestation of Amazon forests by soy farmers. McDonald's supply chain and environmental sustainability are being studied and discussed in prime institutions like Harvard Business School and Berkeley Hass School of Business.

    General Electric

     General Electric has adopted the green initiative uniquely. In the year 2006, GE conducted a contest for college students. College goers were required to design an environment project within the budget of $25,000, and the same was supposed to be implemented on the college campus. The contest was named as "Eco imagination Challenge". Many of the students came up with exceptionally great ideas. Some of the members of the winning team were hired by the company subsequently. On the bottom left-hand corner, the website carried a link that gleamed in green colour stating "Jobs@ GE". The idea behind it is very simple to play the environment-friendly card and attract talent. 

    Google

    Google has successfully used its environmental policies. The company has hired a director who coordinates corporate environmental efforts in an attempt to match their corporate business strategy with their environmental efforts. Some initiatives that support environmental issues at Google include providing subsidies for employees buying hybrid cars, company dining facilities that serve organic sustainability food, charitable contributions to organisations that fight global warming, use of green fuel and solar power, etc.

    Green recruitment in the Banking sector

    Several banking operations have the potential to harm the natural environment, both directly and indirectly. Due to this, many countries have started working on greening their banking sectors (Bukhari, Hashim, and Amran, 2020). Green Banking is not a distinct bank. The term Green Banking is famous around the world nowadays to minimise the environmental risks and make this planet inhabitable. Green banking is an umbrella term that refers to those practices and guidelines that make banks environmentally, socially, and economically responsible. Therefore, the banking industry can play an important intermediary role between economic development and environmental protection for promoting environmentally sustainable and socially responsible investment. Green banking commonly refers to the efforts of the Banking industry to keep the environment green and curtail the greenhouse effects through vindicating their strategies, policy, decisions, and activities regarding banking services, business, and operational activities (Khan & Szegedi, 2019). 

    Green banking as a concept is not much developed in Pakistan and needs more attention from higher authorities due to globalisation, intense competition in global markets, and an increase in environmental issues across the country. Pakistan is among the top countries threatened by climate change, environmental degradation, and resource depletion. The country is currently at the initial stages of Green Banking adoption (Bukhari, Hashim & Amran, 2020).   

    Green Performance Management (GMP):

    Job performance is very important for organisations because it is considered central to individuals, the team as well as organisational effectiveness. Job performance is also a critical factor for both sustainability of the organisations and the well-being of the employees (Ilgen and Pulakos, 1999). The overall aim of performance management is to establish a high-performance culture in which individuals and teams take responsibility for the continuous improvement of business processes and their skills and contributions within a framework provided by effective leadership. Its key purpose is to focus people on doing the right things by achieving goal clarity (Armstrong, 2006). Epstein and Roy (1997), in their study, concluded that when HR managers integrate environmental performance into PM systems, they safeguard environment management against any damage. Today some firms deal with the issue of PM by installing corporate-wide environmental performance standards and Green information systems/audits to gain useful data on environmental performance (Marcus & Fremeth, 2009).

    Green performance appraisal (PA) covers topics such as environmental incidents, the use of environmental responsibilities, and the communication of environmental concerns and policy. Issues involved in environmental PA concern the need for managers to be held accountable for EM performance in addition to wider performance objectives. One concern is that the PA systems with EM objectives appear to be limited largely to plant or division managers and executives only, rather than more broadly to other employees (Milliman and Clair 1996, p. 60).

    Green Performance and Banking

    Banks have to address environmental issues, both in terms of their obligations and opportunities as responsible corporate entities. Usually, banking activities are not physically related to the environment, but the external impact of their customer activities is substantial. So, there is a need for banks to adopt green banking practices in their operations, buildings, investments, and financing strategies. Thus, green banking contributes to reducing carbon footprints by helping companies involved in renewable and clean energy technology (Sahoo & Nayak, 2007; Bihari & Pradhan, 2011). The ultimate objective of green banking is to protect and safeguard the natural environment. It can take place in two ways: technological innovation in banking and behavioural and management innovations in banking practices (Shaumya & Arulrajah, 2016a, and 2016b). Technological innovation in banking can help banks to reduce their negative environmental impact or to improve their positive environmental impact. For example, using online banking instead of a traditional banking system, an online bills payment system instead of the manual payment system, etc. Similarly, behavioural and management innovations in banking practices can also contribute to reducing the negative environmental impact of the banks. For example, energy-saving behaviour of bank staff in their respective branches, waste reduction efforts of bank employees, environmentally friendly initiatives of bank employees, providing loans to the environmentally friendly project, etc. According to Rashid (2010), banks should prioritise providing loans to the sectors that promote various environmental protection activities.

    Green Reward Management

    The reward is generally understood as the total amount of financial and non-financial compensation or total remuneration provided to an employee in return for labour or service rendered at work. Reward, which is at times described as compensation or remuneration, is possibly the most critical contract term in each paid work. 

    Reward systems are no new concept to HR departments, but the idea of a green reward kind of system is a fairly new approach. In such systems, employees are rewarded for their alignment with green company practices, and oftentimes, the rewards themselves are additionally of some eco-friendly nature. The more convincing and compelling the reward system, the more effective it is typically found to be. 

    In Britain, for example, ICI has included environmental targets as part of their performance-related pay assessment for senior managers (Snapeet al. 1994, p. 134). Early research ?ndings from 186US ?rms on the Forbes list reveal a strong relationship between CEO compensation (total compensation and salary) and ?rm environmental reputation, but that CEOs are not necessarily rewarded for their ?rms’ EM record and are not stimulated towards doing so by the structure of such ?rm compensation systems (Stanwick and Stanwick 2001). More recent ?ndings, such as Berrone and Gomez-Mejia’s (2009) study on links between environmental performance and executive compensation in 469US ?rms, reveals stronger support for environmental performance being positively associated with CEO total pay. A study by Cordeiro and Sarkis (2008) of 207 US ?rms from the Standard & Poor 500 ?nds that only in ?rms with an explicit linkage between environmental performance and executive contracts is there evidence for an impact of environmental performance on CEO compensation levels.

    Research Methodology

    This chapter connects with the research and methods which are used to achieve the specific goals of the research. This helps to analyse the validity and reliability of the entire study and evaluate it critically. This chapter focuses on study design, sample size, sampling techniques, variable measurements, and regression models.

    Research Paradigm

    In general, the research paradigm is common in nature and is considered a set of beliefs and practices shared by scientists on the subject. For example, how a particular problem is understood and addressed in a particular way (Kuhn, 1970). Moreover, according to (Guba, 1990), the research paradigm can be easily characterised by how scientists answer three questions: epistemological, methodological, and ontological questions. In short, the practical paradigm believes that claims of information arise from actions, situations, and consequences, not preconditions. Research on the use of pragmatism is not about the technique used but about what works and answers the question. In this study, I used the positivist research paradigm to make hypotheses based on the theory at hand. The hypothesis was investigated or displayed using quantitative and statistical methods to achieve the objectives of the research. The craving for positivist techniques was supported by the way that the review was driven by hypothesis, from which explicit speculations were laid, which prompted the amassing of realities that shaped the premise of ensuing theory testing.

    Research Design

    It is defined as a way for all essential elements of a survey to work together to answer a survey question. The study design allows and sets the hypothetical direction of study design. This study evaluates the effect of GHRM rehearses on environmental sustainability according to a descriptive study design based on the banking sector survey. By providing evidence, it can be easily said that descriptive study design was inherited from similar studies such as learning. According to a survey by (Ponto, 2015), the use of questionnaires is widely recognised as authoritative in people's journeys, what, who, where, how much, and how many questions are answered. It enables the collection of records, which can be explained and acquired and quantitatively analysed, respectively, and the use of descriptive and inference statistics. Research allows researchers to have a record of practices, perspectives, and conditions at specific points in time through questionnaires and interviews, Mugenda and Mugenda (2008). The reason for using the survey was to provide a quantitative explanation of some of the components of the surveyed population. Research and questionnaires explain how GHRM practices such as "green recruitment management practices", "green training", "green development & management practices", and "green rewards & compensation practices affect environmental material in the banking sector. So, the current research is Quantitative and is based on questionnaire research work. The data collected through the questionnaire is then analysed quantitatively.

    Determination of Sample Size

    In this study, the sample size was determined according to the formula (Yamane, 1967). In addition, related research by (Owino, 2016) and Abid et al. (2020) approved the same formula in conducting the research regarding the study of green human resource management.

     

    Sample Size= 122


    Variables Measurement

    This research included 4 variables that include "green recruitment," "green training," and "green rewards and compensation," and the fourth was "green performance management." However, a Likert scale of 5 is used to scale the question for these four variables (1 to 5). The dependent variable for this study is the sustainability of the environment. In addition, use the Likert Scale (1 to 5) to obtain answers on environmental sustainability levels related to factors such as leadership roles, green teams, budgets, regulatory practices, and CSR initiatives.

    ANOVA

    Analysis of variance is used for finding the relationship between the dependent and independent variables. The significance value tells us about the relationship between the variables. The hypotheses are tested based on significance values.

    Results and Discussion

    This section presents the results of the hypothesis testing. Overall, ANOVA results have been used for predicting the relationship between the dependent and independent variables. The analysis is divided into four groups based on variables.

    Relationship between Green Recruitment Practices and Environmental Sustainability

    The first hypothesis of the study is that green recruitment has a significant impact on environmental sustainability in the selected

    banks of Pakistan. 

    Table 1

    Overall ANOVA for Green Recruitment and Selection Management Practices and Environmental Sustainability

     

    Sum of Squares

    df

    Mean Square

    F

    Sig.

    Between Groups

    7201.677

    33

    218.414

    2.553

    .004

    Within Groups

    6501.201

    76

    85.542

     

     

    Total

    13702.878

    109

     

     

     

    Note: SS represents the Sum of squares, DF is the degree of freedom, MS is the mean square, F is F statistics, and Sig is the significance level

     

    The results indicate that the green recruitment practices are positive and significantly effecting the environmental sustainability in the banking sector of Pakistan. Hence, the first hypothesis of the study is accepted, and it is confirmed that green recruitment practices are significant in environmental sustainability. 

    Relationship between Green Training & Development and Environmental Sustainability

    The second hypothesis of the study is that green training & development has a significant impact on the environmental sustainability of the banking sector of Pakistan. The regression results are reported in table A and table B

    Table 2.

    Green Training and Development and Environmental Sustainability

     

    SS

    Df

    MS

    F

    Sig.

    Between Groups

    7998.291

    44

    181.779

    2.962

    .003

    Within Groups

    3988.961

    65

    61.368

     

     

    Total

    11987.252

    109

     

     

     

    Relationship between Green Reward and Compensation Management Practices and Environmental Sustainability

    The third hypothesis of the study is that green reward & compensation management has a positive and significant impact on the environmental sustainability in the banking sector of Pakistan. The analysis of variance (ANOVA) results is reported in table A and table B.

    Table 3.

    Relationship between Green Reward and Compensation Management Practices and Environmental Sustainability.

     

    SS

    DF

    MS

    F

    Sig.

    Between Groups

    9537.988

    33

    289.031

    3.416

    .000

    Within Groups

    6449.878

    76

    84.866

     

     

    Total

    15887.866

    109

     

     

     

    It turns out, according to the research, that the big Pakistani banks have different ways of providing environmental education and job prospects than other financial institutions. The results of the inquiry supported the idea. According to the study's results, environmentally responsible incentive and compensation management practices have a favourable and large impact on Pakistan's banking industry's environmental sustainability.

    Green Performance Management and Environmental Sustainability

    The fourth hypothesis of the study is that green performance management has a positive and significant impact on environmental sustainability.

    In the banking sector of Pakistan. The analysis 

    of variance (ANOVA) results are reported in

    table A and table B.

    The result of the analysis indicates that there is a significant difference in the means of the various practices of green performance management in the banking sector of Pakistan. The result of the study thus accepted the hypothesis. The result of the study concluded that green performance management practice has a positive and significant impact on the environmental sustainability in the banking sector of Pakistan (the overall model F-statistics is 7.961 with a significance level of 0.000).  

    Table 5.

    . Summary of Findings

    The objective of the study

    Hypothesis

    Significance

    Result

    To analyse the impact of green recruitment and selection practices on environmental sustainability in the banking industry of Pakistan.

    Green recruitment & selection practice has a positive and significant impact on

    environmental

    sustainability in the selected banking sector in Pakistan.

    0.004

    Accepted

     To analyse the green training and development practice impact on the environmental sustainability in the banking industry.

     Green Training & development has a positive and significant impact on environmental sustainability.

    0.003

    Accepted

    To analyse the impact on the banking industry's environmental sustainability of the use of green reward management practices.

    Green reward & Compensation has a positive and significant impact on environmental sustainability

    0.0000

    Accepted 

    To determine the extent to which environmentally friendly performance management practices have an impact on the sustainability of the environment in banks.

    Green performance management has a positive and significant impact on environmental sustainability.

    0.0000

    Accepted

    Conclusions

    The primary objective of this study was to investigate the effects that environmentally responsible HR practices have on a selection of Pakistan's banking industry. The primary purpose of this study is to investigate the effect that is implementing a variety of environmentally friendly human resource management strategies, specifically green recruitment practices management, green training and development, green reward and compensation management, and green performance management practices, have had on the environmental viability of the banking industry in Pakistan.

    Green Recruitment Practice on Environmental Sustainability

    The investigation discovered that Banks in Pakistan had embraced green HR management practices, and they applied those practices in the area, including online hiring, phone calls, and new employee screenings. The result of the study designated that most banks test the knowledge and know-how of the new hiring staff on the issue of understanding green human resource management. The result also concluded that banks welcome those staff members who are aware of green matters. 

    Green Training and Development Practice on Environmental Sustainability

    The research study concluded that banks in Pakistan had integrated green training and development practices into the main HR policies and practices of the banks. They have achieved this goal through different methods and techniques that include but are not limited to; they have introduced the job rotation policy to train the staff on environmental issues and also conducting different pieces of training and workshops on the matter of environmental management. The open seminars are conducted on creating awareness regarding eco values and climate change and its repercussion on the overall environment. The study further concluded that the usage of green training and development had enhanced the banks' obligation in fulfilling the CSR responsibilities and helped in building green teams. 

    Green Reward and Compensation Practice on Environmental Sustainability

    The finding of the research shows that a large number of the respondent agreed that the banks had integrated green reward and compensation practices into main human resources policies and practices. This indicates that the incorporation of green reward and compensation strategy in the HR policies enhances the organisational commitment toward environmental sustainability. The financial reward, besides other benefits, motivates the organisation's employees to realise and fulfil sustainable practices.  

    Influence of Green Performance Management Practice on Environmental Sustainability

    The study examines to find out whether the banks in Pakistan integrate the green performance management practices in their main human resource policies and practices and, the ways through which banks incorporate performance management practices in human resource policies & practices and features of environmental sustainability and green performance management practices. The results of the study identified that the banking sector in Pakistan incorporates green performance management practices in human resource practices and policies in general.

    The results of the study support that green performance management is the best tool through which organisations measure the performance standards throughout the organisation hierarchy and units. Banks need to identify some important aspects of green targets, and they should include these green targets in their key performance areas (KPA). 

    The research pursued to identify the different ways through which green performance management practices could be integrated into the main HR policies and practices of the banking sector of Pakistan. Two main techniques have emerged as the result of this study; 

    1. Banks can integrate green performance management practices by setting specific green targets for every employee of the organisation.

    2. Banks can have a concrete documented policy of green performance management.

    Recommendations

References

  • Arulrajah, A. A., Opatha, H. H. D. N. P., & Nawaratne, N. N. J. (2016). Green human resource management practices: a review. Sri Lankan Journal of Human Resource Management, 5(1), 1.
  • Sharma, R., & Gupta, N. (2015, January). Green HRM: An innovative approach to environmental sustainability. In Proceeding of the Twelfth AIMS International Conference on Management, 2-5.
  • Jabbour, C. J. C., & Santos, F. C. A. (2008). Relationships between human resource dimensions and environmental management in companies: proposal of a model. Journal of Cleaner Production, 16(1), 51–58.
  • Aranganathan, P. A. (2018). Green Recruitment, A New-Fangled Approach to Attract and Retain Talent. International Journal of Business Management &Research, 8(2), 69–76.
  • Lather, A. S., & Goyal, S. (2012). Impact of Green Human Resource Factors on Environmental Performance: A Study of Power Sector Organization. Enhancing The People Factor, 25.
  • Milliman, J., & Clair, J. (1996). Best environmental HRM practices in the US In Greening People: Human Resources and Environmental Management; Wehrmeyer, W., Ed.
  • Renwick, D., Redman, T., & Maguire, S. (2008). Green HRM: A review, process model, and research agenda. University of Sheffield Management School Discussion Paper, 1(1), 1-46.
  • Muster, V., & Schrader, U. (2011). Green Work-Life Balance: A New Perspective for Green HRM. German Journal of Human Resource Management: Zeitschrift Für Personalforschung, 25(2), 140–156.

Cite this article

    APA : Maqsood, M., Malik, W. S., & Khan, M. I. (2022). Green Human Resource Management (GHRM) and Environmental Sustainability: A Case Study of the Banking Industry of Pakistan. Global Economics Review, VII(I), 102-116. https://doi.org/10.31703/ger.2022(VII-I).09
    CHICAGO : Maqsood, Mahreen, Waseem Shahid Malik, and Muhammad Imran Khan. 2022. "Green Human Resource Management (GHRM) and Environmental Sustainability: A Case Study of the Banking Industry of Pakistan." Global Economics Review, VII (I): 102-116 doi: 10.31703/ger.2022(VII-I).09
    HARVARD : MAQSOOD, M., MALIK, W. S. & KHAN, M. I. 2022. Green Human Resource Management (GHRM) and Environmental Sustainability: A Case Study of the Banking Industry of Pakistan. Global Economics Review, VII, 102-116.
    MHRA : Maqsood, Mahreen, Waseem Shahid Malik, and Muhammad Imran Khan. 2022. "Green Human Resource Management (GHRM) and Environmental Sustainability: A Case Study of the Banking Industry of Pakistan." Global Economics Review, VII: 102-116
    MLA : Maqsood, Mahreen, Waseem Shahid Malik, and Muhammad Imran Khan. "Green Human Resource Management (GHRM) and Environmental Sustainability: A Case Study of the Banking Industry of Pakistan." Global Economics Review, VII.I (2022): 102-116 Print.
    OXFORD : Maqsood, Mahreen, Malik, Waseem Shahid, and Khan, Muhammad Imran (2022), "Green Human Resource Management (GHRM) and Environmental Sustainability: A Case Study of the Banking Industry of Pakistan", Global Economics Review, VII (I), 102-116
    TURABIAN : Maqsood, Mahreen, Waseem Shahid Malik, and Muhammad Imran Khan. "Green Human Resource Management (GHRM) and Environmental Sustainability: A Case Study of the Banking Industry of Pakistan." Global Economics Review VII, no. I (2022): 102-116. https://doi.org/10.31703/ger.2022(VII-I).09