Emerging Trends in

Sustainable HRM :
Green HRM Practices

Presented By : Dr Noor Ullah Khan

Paradigm shifts in HRM
Table 1: Stages of Development in HRM
Scientific Human Revisionism Strategic HRM Sustainable
Management Relations HRM

Period 1918-1945 1945-1965 1965-1980 1980-now 2010- onwards

Provides
Focuses on Discusses Based on
clarity on job creation
labor division and relationships of Primarily focus on principles of human
and autonomy of
Focus issues related employees in context areas of strategic and related aspects in a
employees’
employees of personal and social managerial orientation broader agenda of
involvement related
monitoring domain HRM and sustainability
areas

Purpose Efficiency Cooperation Autonomy Performance Sustainability

Source: De Prins et al. (2014, p. 8)

Overview
 Human wellbeing, economic growth and sustainability
depends on how well we manage the environment ( Kahle
& Gurel-Atay, 2013). Sustainability has emerged as a key
area of concern for organizations to address major
environmental issues e.g. global warming, climate
change, water and air pollution and degrading
environmental performance (IEA, 2015).
 Growing environmental awareness among stakeholders
and stringent environmental regulations are building
pressure on organizations to adopt Green HRM practices
and improve sustainable performance and reducing
negative impacts on society and environment (Ghazilla et
al., 2015).
What is Green HRM ?
 The term green human resource management (green HRM) was
initially introduced by Renwick et al. (2008) is relatively a new
research area that aims to align HRM practices and environmental
management (Renwick et al., 2013).
 Green human resource management practices refer to the alignment
of HRM practices with environmental management and inclusion of
environmental aspects to traditional HRM practices such as green
recruitment, green training, green performance appraisal, and green
rewards (Jabbour, 2011).
 It is quite challenging for organizations human resource to implement
environmental initiatives because of growing international
environmental standards and low level of environmental compliance,
ineffective environmental laws and regulations in developing
countries (Daily et al., 2011).
 Similarly, Green HRM practices are also vital for adopting
environmental management systems (EMS) such as ISO14001 and
fostering pro-environmental behaviours (Boiral, Talbot & Paillé, 2015).
Major Green HRM practices
 Green human resource planning
 Green job design and analysis
 Green Recruitment and selection
 Green training and development
 Green performance appraisal
 Green Compensation and Rewards
 Green employee relations
 Green Employee involvement

(Daily & Huang, 2001; Govindarajulu & Daily, 2004; Daily et al., 2011
;Jackson & Seo, 2010; Renwick et al., 2013; Jabbour, 2015)
Green HRM Challenges Ability
Motivation
Opportunity
(AMO)

- How to Develop Green Abilities Developing

Green Abilities Motivating Green
Providing Green
Opportunities
Employees

- How to Motivate Green Employees Green selection Involving

and Recruitment Employees in
EM initiatives
Training &
Green Empowerment
- How to Provide Green Opportunities Development Performance
management/
and
engagement
appraisal
Supportive pro
environmental
climate/culture

Renwick et al. (2013)

Figure 1: AMO Theory in Green HRM

Source: Appelbaum et al. (2000); Renwick et

al. (2013)
Ability Motivation Opportunity (AMO) Theory

Ability–Motivation–Opportunity theory (Appelbaum et al. 2000)

suggests that HRM practices that enhance the firm’s human
capital via increased human capabilities translate into
performance outcomes, such as higher productivity, reduced
waste, higher quality and profit. According to AMO theory HRM
works through increasing employees’ Ability through attracting
and developing high-performing employees; enhancing
employees’ Motivation and commitment through practices such
as conditional rewards and effective performance management
(PM); and providing employees with the Opportunity to engage
in knowledge-sharing and problem solving activities via
employee involvement (EI) programmes(Renwick et al. (2013).
Green HRM Theoretical implication

 Green human resource management (green HRM)

is a relatively new area for research corporate
sustainability. Most of previous studies evaluated
green HRM based on qualitative approaches.
Despite few studies on green HRM used
quantitative approach (Ehnert, 2009; Renwick et
al., 2013 ;Wagner, 2013; Zibarras & Coan, 2015;
O'Donohue & Torugsa, 2016).
Green HRM practical Implications
 Organizations should effectively use green HRM practices to improve
sustainable performance (Khan et al., 2017).
 Application of Green HRM practices such as green training, educating
and rewarding their managers can be used to encourage pro-
environmental behaviors within organizations (Robertson & Barling,
2013).
 Green HRM practices (selection and recruitment) can be used as
effective tool to build green image and attract new talent for
organizations. Managers of environmental performance appraisals
should be held accountable for performance outcomes (Renwick et al.,
2013).
 Green HRM practices (training and development) educate mangers
about environmental aspects of the job and train them how to save
energy, reduce waste, and create environmental awareness within the
organization (Zoogah, 2011).
Green HRM Implications

 Companies should use green HRM practices such as green training, educating and
rewarding their managers to encourage OCBE. A survey results has reported that
only 8% of UK firms rewarding green behaviors with various types of rewards
(Phillips, 2007, p. 9).
 Some US based firms pay more to eco-friendly CEO performance (Berrone &
Gomez-Mejia, 2009). For successful EMS ISO14001 implementation and
performance effectiveness required green HRM practices (Jackson et al., 2011;
Govindarajulu & Daily, 2004; Sarkis et al., 2010).
 The implication of Green HRM Practices and EMS ISO14001 certification is
miserably low in organizations at developing countries as compared to developed
OECD countries e.g. (US, UK, Japan, Germany, Sweden, Australia). Major issues are
cost consideration, extensive documentation, economic and social barriers in
acquiring ISO 140001 certifications (Krut & Gleckman, 2013; Babakari et al.,
2003).
 The war for talent is a
Developing Green abilities: attracting term coined by Steven
Hankin of McKinsey &
and developing talented staff Company in 1997, and a
book by Ed Michaels.
 Recruitment and selection McKinsey & Company is
an American worldwide
 Attracting high-quality staff is a key HR challenge in the ‘war for management consulting
firm. It conducts
talent’. It seems that some employers, particularly major qualitative and
multinational companies (Ehnert, 2009), are adopting GHRM practices quantitative analysis to
evaluate management
as a form of‘ employer branding’ in order to improve their selection decisions across public
attractiveness for an increasingly environmentally aware younger and private sectors.
generation.
 Employee training in EM
 Training in Green issues is widespread now in some countries. In the
UK, a CIPD*/KPMG* survey reported 42% of UK organizations educating
and training employees in business practices that are environmentally
friendly (Phillips 2007) and training employees to comprehend the
threats that climate change may pose on firms (Felgate 2006b). In the
US, £300m has been invested in training for Green jobs under the
Obama administration (Barton 2009) *Chartered Institute of Personne
and Development (CIPD)
*Klynveld Peat Marwick
Goerdeler (accounting firm)
Management development and leadership
 The Survey results that data from 156 plant level employees among 31 lean
automobile assembly plants in North America and Japan reveals that GHRM
practices ‘encourage a higher level of environmental training’, and the
development of skills required for waste reduction (Rothenberg et al. 2001, p.
241).
 Training for management staff is also important for GHRM. As business schools are
potentially seen as architects of a new ‘evolutionary course’ towards sustainability
and environmental knowledge (Starkey and Crane 2003), they may play a key role
in educating and developing environmental leaders in the future.
 Environmental management is also increasingly being included in MBA Programme
core curriculum in countries such as China, and is seen to be the type of business
education that empowers managers to start projects in EM (Fryxell and Lo 2003).
 The survey data reported that growing number of ‘Eco-MBAs’ programmes are
incorporating environmental courses into their curriculum (BeyondGrey Pinstripes
2010). Some top business schools, such as SOM Yale University, offer a joint MBA
and Master of Environmental Management (MEM) that combines environmental
studies with HRM management. Other schools also offer “Green MBA” programs,
an MBA in sustainable business, or MBAs with concentrations in sustainable
business or corporate responsibility. These programs may or may not emphasize
management specifically.
https://www.environmentalscience.org/degree/environmental-mba https://www.youtube.com/watch?v=UTJc5fqwbGI
Management development and leadership Continue…

 Dolan’s (1997) study of US MBA students found over half saying that they would take a lower
salary to work for an environmentally responsible organization.
 CIPD/KPMG survey of 1000 HR professionals found 47% stating that they feel that employees
would prefer working for firms that have a strong Green approach, and this would attract
potential high-quality recruits (Phillips 2007). Comparative interview evidence from the UK and
Japan (from 88 interviews among 53 companies) also indicates that it is ‘easier to hire high-
quality employees if a firm had a better environmental reputation’ (Bansal and Roth 2000, p.
724).
 For example, a survey of 94 Brazilian firms with ISO14001 certification found recruiters
preferring candidates with environmental knowledge and motivation(Jabbour et al. 2010).
Although there are as yet few systematic studies of ‘Green-collar’ recruitment practices, there
is a growing advice industry of self-help guides on how to find a Green job that includes case
study and employer interview evidence about their hiring practices (Cassio and Rush 2009). This
literature reports the use of job descriptions and personnel specifications that emphasize
environmental aspects of the job and interview protocols that probe applicant environmental
knowledge, values and beliefs.
Green leadership
 In a study designed to develop a preliminary model for environmental
leadership, interview and questionnaire data from 73 Canadian and US
leaders (of for-profit and non-profit product and service organizations)
reveals that their personal values ‘were more eco-centric, open to change,
and self transcendent’ than other managers in different types of organizations
(Egri and Herman 2000).
 The finding that personal values influence Green leadership behaviours is
supported in Bansal and Roth’s study of 53 U.K and Japanese companies,
which finds that single individuals tend to champion ecological responses,
with their own values driving such decision processes rather than ‘a widely
applied decision rule’ (Bansal and Roth 2000). Managerial attitudes and norms
are seen to act as strong drivers for undertaking active EM behaviours from a
study of organizations in the US wine industry (Marshall et al. 2005).
 Observed learning processes of managers in medium-sized and large German
and Dutch organizations reveals a participatory leadership style being used,
with leaders active in involving employees in sustainability processes
(Siebenhuner and Arnold 2007).
Motivating Green employees
 Using PM in EM presents many challenges, how to measure
environmental performance standards across different organizational
departments/units, and gaining useable data on the environmental
performance of these units and staff. Some firms have addressed this
issue by installing corporate-wide environmental performance
standards, and Green information systems/audits to gain useful data
on environmental performance (Marcus and Fremeth 2009).
 One way in which Green PM systems can be successfully initiated is to
develop performance indicators for each environmental risk area
(TUSDAC 2005). Green performance appraisal (PA) covers topics such
as environmental incidents, use of environmental responsibilities and
the communication of environmental concerns and policy. Issues
involved in environmental PA suggest that environmental managers to
be held accountable for EM performance in additionto wider
performance objectives
Motivating Green employees
Continue..
 Pay and reward systems
 In line with a strategic approach to reward management, defined as the
aligning of pay practices and corporate objectives, there is some evidence for
organizations developing reward systems to incentivize EM, especially for
senior managers.
 In Britain, for example, ICI* have included environmental targets as part of
their performance related pay assessment for senior managers (Snape et al.
1994, p. 134).
 A study by Cordeiro and Sarkis (2008) of 207 US firms from the Standard &
Poor-500 finds that only in firms with an explicit linkage between
environmental performance and executive contracts is there evidence for an
impact of environmental performance on CEO compensation levels.
*Imperial Chemical Industries S&P 500, or just the S&P, is an American stock market index based on the market
capitalizations of 500 large companies having common stock listed on the NYSE, NASDAQ
Motivating Green employees
Continue..
 Some 40% of UK employers are reported in a CIPD reward survey (Cotton
2008) as reviewing their reward and employment conditions policies and
practices to see whether they support their environmental objectives.
 In Britain, some examples of company practice include the use of a ‘carbon
credit card’ and cash incentives for staff to purchase hybrid cars (Brockett
2006; Davies and Smith 2007), incentive schemes rewarding good
attendance/performance with a ‘Green benefit card’ enabling staff purchases
of Green products (CIPD 2009, p. 4), and annual awards dinners to recognize
exemplary behaviour in EM (Simms 2007, p. 39). Additionally, financial
incentives have been introduced into company EM reward strategies in the
UK, such as tax incentives and exemptions to promote loaning bicycles to
employees, and the use of a less polluting car fleet (Davies and Smith 2007).
Providing Green opportunities:
employee involvement
 Employee involvement in EM seems to have its effects through three core
processes: First, through tapping employees’ tacit knowledge gained through
their close links to the production process (Boiral 2002); second, through
engaging and empowering employees to make suggestions for environmental
improvements (Govindarajulu and Daily 2004); and third, through developing
a culture in the workplace which supports EM improvement efforts.
 Tacit knowledge
 A study of worker participation in EM initiatives in the NUMMI automobile
plant in the US found that EI makes an important contribution to improving
environmental performance as ‘employees possess knowledge and skills that
managers lack’ (Rothenberg 2003). This study goes further and provides an
important insight into how worker knowledge is combined with managerial
and technicalknowledge to improve EM.

New United Motor Manufacturing, Inc. (NUMMI) was an automobile manufacturing company in Fremont,
California, jointly owned by General Motors and Toyota
Providing Green Opportunities
Empowerment and engagement
 Comparative case studies of UK and US companies reported that
increasing employee feelings of psychological empowerment, because
it increases their willingness to make suggestions for environmental
improvements, is critical to EM (Kitazawa and Sarkis 2000). Survey
data from 232 Australian manufacturing firms reported a positive
association between the level of employee empowerment in EM and
environmental performance (Simpson and Samson 2008).
Supportive cultures for EM
 Employee involvement is seen to be a very effective approach to
developing a strong pro-environment culture in small and medium-
sized enterprises (SMEs), a sector especially difficult to reach in
environmental terms, with findings from a Netherlands survey of 194
employees in eight metal businesses reporting that EI campaigns in EM
(which put information at the center of joint management and
employee decision-making) have the greatest influence in reducing
the costs of waste processing (Klinkers and Nelissen 1996).
Providing Green Opportunities Continue..
The union role in EI and EM
 Some recent developments in the UK include
environmental education programmes for rank and file
union members, joint management and union training
programmes in EM, and the development of workplace
environmental representatives, the so-called ‘union Green
representatives’ (TUC 2009). Currently the TUC is
campaigning for legal rights for such union Green
representatives to take reasonable time off during
working hours to promote sustainable work practices,
carry out audits, consult on EM polices and receive
training.
The Trades Union Congress (TUC) is a national trade union centre, a federation of
trade unions in England and Wales, representing the majority of trade unions
Source : Renwick et al., (2013)
Sustainable Performance

 Triple bottom line (TBL) is an accounting framework with three

elements: social, environmental and financial. Many organizations
have adopted TBL framework to evaluate their sustainable
performance with a broader perspective to create greater business
value.
 The term TBL was coined by John Elkington (1994) According to Hall
(2011). TBL approach measures performance beyond the traditional
measures of profits, return on investment, and shareholder value and
include environmental and social dimensions (People, planet and
profit). Sustainable performance (SP) refers to the integration of
economic, environmental and social performance measuring overall
organizational performance Maleticˇ et al., 2014).
Sustainable Performance Continue..
 TBL approach can be applied to measure sustainable
performance (SP). SP integrates performance based on social
and environmental along with economic dimension. Inclusion
of two additional aspects in the measurement and evaluation
of SP can be understood by the fact that responsibility of the
company is not only to generate economic welfare but people
and environment both are equally important (Fauzi et al.,
2010). SP accommodates the interest of various stakeholder
groups in the society, along with shareholders (Henriques &
Richardson, 201). Similarly, literature has reported that
researchers used various methodologies to evaluate SP (Gross,
2015).
 The underlying notions of these concepts are focused on the
win-win solutions, where economic benefits are aligned with
environmental performance such as reducing resource
consumption and waste minimization, and social performance
i.e. minimization of negative social impacts or maximization
of positive ones (Young & Tilley, 2006).

Triple Bottom Line (TBL) Source: Elkington (1994 p, 523)

 Theories explaining Green HRM practices
and Sustainable performance
Natural-resource-based view (NRBV) AMO Discretionary Sustainable
Green HRM Behaviour Performance
According to Hart (1995) the natural-resource-based practices E.g. OCBE
view (NRBV) approach firms must be able to respond to
changing environmental imperatives through the
development of new resources. Hart (1995, p.98) has Green Green Green
argued that one of the most important drivers of new Abilities Motivation Opportunities
resources and capability development for firms will be
the constraints and challenges posed by the natural Green Green
Green
environment. Selection Performance Employee
Recruitment, management involvement in
The NRBV posits that, as firms comprehend the appraisal Green
Training and developmental
constraints imposed by the natural environment, reward systems
Development plans
environmental sustainability became increasingly
important for sustaining their resource-based advantage
(Walls et al., 2011).
AMO Theory
(Appelbaum et al., 2000)
 Conclusion
The concept of sustainability applies to HRM. The traditional HRM assumes
that human resources are there to be consumed and exploited rather than
developed and maintained. GHRM practices GHRM promises potential benefits
for both organizations and employees. For the organization, there is some
evidence that better environmental performance is also associated with
improved financial performance outcomes the so-called ‘Green pays’ argument
(Crotty and Rodgers 2011).
Equally, the GHRM practices analyzed here are likely to improve employee
wellbeing in the workplace, not least through improving the working
environment and satisfying the needs of an increasingly environmentally aware
workforce. The discussion conclude based on recent studies that understanding
of how GHRM practices enhance employees abilities and motivation to become
involved in environmental opportunities & activities lags behind. Organizations
are not using the full range of GHRM practices, and this may limit their
effectiveness in efforts to improve EM and sustainability performance.