IMPACT OF GREEN HUMAN RESOURCE FACTORS ON 1)-Jan2015/IJEMS Vol6(1)-6.pdfIMPACT OF GREEN HUMAN RESOURCE FACTORS ON ENVIRONMENTAL PERFORMANCE IN MANUFACTURING COMPANIES: AN EMPIRICAL EVIDENCE ... called Green Human Resource Management ...

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  • I.J.E.M.S., VOL.6 (1) 2015: 23-30 ISSN 2229-600X

    23

    IMPACT OF GREEN HUMAN RESOURCE FACTORS ONENVIRONMENTAL PERFORMANCE IN MANUFACTURING COMPANIES:

    AN EMPIRICAL EVIDENCE1Lather AnuSingh ,1,2Goyal Shikha

    1University School of Management Studies, Guru Gobind Singh Indraprastha University Dwarka, Delhi-110403, India2PDM College of Engineering, Bahadurgarh, Haryana 124507, India

    Corresponding Authors Email: shikha@dreyheights.com

    ABSTRACTThe social concern about environment has led companies to adopt environmental management practices at an increasingrate. Companies voluntarily implement environmental management system (EMS) for this purpose. But only deployingEMS will not be effective in enhancing environmental performance until and unless employees are motivated for theirenvironmental endeavors. Very few studies exist to guide managers in motivating employees to maximize their efforts insuccessful implementation of EMS. So the purpose of this paper is to determine the relationship between green humanresource factors i.e. factors pertaining to environmental issues and organizational environmental performance as perceivedby the organizations employees. Through literature review seven human resource factors Top management commitment,employee environmental communication, employee environmental trainings, environmental teams, employee involvement,employee environmental rewards, green programs has been established. The impact of these factors on environmentalperformance is measured in ISO 14001 certified manufacturing organizations as perceived by the employees. Aquestionnaire was distributed to 150 employees working at managerial and non-managerial positions in variousdepartments within 9 manufacturing companies with ISO 14001 certification in Delhi-NCR region. A total of 133complete questionnaires were received. The results of regression analysis suggest that top management commitment,employee trainings and green programs have a significant positive relationship to perceived environmental performance.However, the relationship between environmental communication, environmental teams and employee involvement wasstatistically insignificant. No significant difference was found in the perceptions of managers and non-managers withrespect to different human resource factors affecting environmental performance.

    KEYWORDS: EMS, ISO 14001, Human resource factors, Environmental performance, green management.

    INTRODUCTIONThe social concern about environment has led companiesto adopt environmental management practices at anincreasing rate. Companies voluntarily implementenvironmental management system (EMS) for thispurpose. Environmental Management System is the mostused tool of environmental management in companies. AnEMS is a set of management processes that requires firmsto identify, measure and control their environmentalimpacts (Bansal and Hunter, 2003).It provides amanagement framework for achieving environmentalobjectives. So companies implementing environmentalmanagement systems conduct environmental activities tobetter control the companys environmental impacts. Ithelps the company in preventing pollution and savingcompanys money by reducing wastes, reducing energyconsumption, carrying recycling activities and overallenhancing the corporate image. It contributes toenvironmental and economic benefits to the organizations.

    One of the major area that have gained prominence astarget for environmental management in literature ishuman resources. Human resource is the key resource ofany organization and can have a significant impact on how

    the organization operates. Thus the support of humanresource management practices is considered fundamentalfor adopting environmental management practices(Govinda rajulu and Daily, 2004). Researches affirm that agreater integration between human resource managementpractices and environmental issues helps firms toimplement EMS effectively. This process of support fromHR to EM objectives is called Green Human ResourceManagement (GHRM) (Renwick et al, 2008).Companiescan use various people management policies and practicesfor achieving the objective of environmental management.It can manage the behaviors of people and can contributeto the green movement. It can provide a guiding platformto engage employees in environmentally sustainable waysat work to reduce their carbon footprint and embed an eco-friendly culture within the organization. Very few studiesexist in literature to guide managers in considering thehuman resource factors in order to maximize their effortsin successful implementation of EMS (Daily and Huang,2001; Govindarajulu and Daily, 2004; Wee and Quazi,2005). In particular, authors have espoused the need forexamination of issues such as top managementcommitment, employee training, empowerment, rewards,

  • Impact of green human resource factors on environmental performance in manufacturing companies

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    supervisor support, and teamwork within the context ofenvironmental management (Beard, 1996; Daily et al.,2007; Daily and Huang, 2001; Govindarajulu and Daily,2004; Kitazawa and Sarkis, 2000; Ramus, 2001; Ramusand Steger, 2000; Sarkis, 2001). However, only a fewempirical studies have considered these variables in thiscontext (Daily et al., 2007; Wee and Quazi,2005;Kaur(2011)). Hence, these studies provided a newand important direction for researchers interested in issuesthat impact environmental management. We feel it isworthwhile to extend this stream of research among firmsin Indian manufacturing sector.

    REVIEW OF THE LITERATUREWalter Wehrmeyer (1997), Going green is good forbusiness.and HR staff an article of in an annual surveyof top management graduates in Europe with respect toenvironment has come up with four most important factorsfor these graduates: (1) green image helps recruitment (2)more support from employees to changes linked withimprovement in environmental performance than tocutting costs or raising competitiveness (3) Bonuses tied toenvironmental performance (4) Pay attention to workplace.

    Quazis (1999) seven case studies in Singaporerevealed that companies attained substantial monetarysavings from EMS implementation/ISO14001 throughrecycling activities, product and process modification,reduced energy consumption, reduction in chemical use,improvement in pollution prevention processes butdifficulty in securing employee commitment was found inmost of the companies.

    Beard & Rees (2000) describes green teams usedin Kent County Council a UK local authority. It states thatthe teams were used to: generate ideas, enhance learningexperiences, explore issues, identify conflict and focusaction to enhance understanding about why, what, how,where and when to pursue the pest practicableenvironmental options.(p.27)

    Daily and Huang (2001) proposed a conceptual modelof various HR factors and their relationship with EMSimplementation. The basic elements of ISO14001 has tohave an interface with HR factors for its implementationlike Policy &teams, Planning & training, implementationand Empowerment ,Checking corrective action & rewards,Mgt. review and top mgt. Limitation given was to quantifythe impact of HR factors for the deployment of EMS.

    Ramus (2001) found that companies that want toimprove their environmental performance can increasetheir employees willingness to eco-innovate throughsupportive behaviors from line managers. It showed howfirms can encourage line managers to adopt behaviors thatemployees perceive to be supportive of environmentalactions and which behaviors and policies are mosteffective at supporting environmental innovation.Massoud et.al. madea comparative analysis ofenvironmental management systems in Mexicanmanufacturing sector and measured environmentalconstructs like supervisor environmental training,supervisor environmental empowerment, perceivedenvironmental performance, employee environmentaltraining, employee environmental teamwork and employee

    environmental empowerment. Firms implementing EMSand that too having some certification were rated higherthan the firms without an EMS.Govindarajulu & Daily (2004) presented a theoreticalframework on motivating employees for environmentalimprovement by integrating top managementcommitment, employee empowerment, rewards, feedbackand review and environmental performance.

    Wee and Quazi (2005) developed and validated a setof seven critical factors of environmental management thatcould be used by managers in assessing and improvingtheir own environmental practices. A survey methodologywas used. A pre-tested questionnaire was mailed to themanaging directors or the chief executive offices of 848electronic and chemical manufacturing companies inSingapore and 186 completed responses were received.The seven critical factors established through reliabilityand validity analyses were top management commitment,total involvement of employees, training, greenproduct/process design, supplier management,measurement and information management which showedhigher performance measure scores for ISO 14000certified companies than non-certified companies.

    Daily, Bishop & Steiner (2007) examines empiricallythe relationship between HR factors and employeeperceptions of environmental performance of 437employees of a large organization in the aerospace field inSouth Western U.S. which was ISO 14001 certified. Mgtsupport, EMS training, EMS rewards, Empowerment arerelated to perceived environmental performance. EMSteamwork plays a mediating role between some of theindependent variables leaving top mgt support &Employee empowerment which was perceived to berelated to their individual jobs.

    Uusi-Rauva and Nurkka(2010)conducted study on amultinational company KONE regarding the kind ofinternal communication within the organization that wouldbe effective in engaging employees in implementing anorganizations environmental strategy. Four main themesconsidered were: 1) Employees understanding of thecompanys environmental policy.2) Meaningfulness ofthat policy in the employees own job.3) Employees viewson the content and channel of environmentalcommunications.4) Employees views on the barriers tocommunication &action in environmental issues. Findingsfrom 12 interviews and 1386 responses from surveyresulted that the overall barrier is less considerate aboutenvironment when they think they are busy. The importantconsiderations included 1) Tailoring environmentalmessages to different employee groups based upon itsrelevancy to their jobs.2) Messages should be clear,practical and easy to implement 3) Assign environmentallyactive employees as contact persons to each departmentwho everybody could approach with environmentalinitiatives.

    Kaur Harjeet(2011) examines the relationshipbetween HR factors and perceived environmentalperformance using a sample of middle and lower levelemployees in five ISO14001 certified Malaysianmanufacturing companies. A sample of 223 was analyzedusing SPSS 16 version. The results revealed thatmanagement commitment, feedback and review and

  • I.J.E.M.S., VOL.6 (1) 2015: 23-30 ISSN 2229-600X

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    empowerment have a significant positive relationship toperceived environmental performance. The relationshipbetween rewards and perceived environmentalperformance was found statistically insignificant.

    Jabbour (2013a) assessed the relationship betweenenvironmental training (ET) and environmentalmanagement maturity (EMM) using survey and statisticalanalysis of 95 Brazilian companies with ISO14001certification. Structural equation modeling based on PartialLeast Squares, more specifically smart PLS 2.0 was usedto process the data. The results indicated that the constructenvironmental training relates positively and significantlywith the environmental management maturity.

    Jabbour (2013b) presented the results of a systematicliterature review on environmental training inorganizations. The main studies in this area were classifiedand coded and a research agenda with 9 recommendationswere presented. Analysis revealed that most environmentaltraining studies were quantitative and used survey method.The next most numerous studied were purely conceptualfollowed by qualitative studies based on case studies.Majority of the studies focused on manufacturing sector asit generates greater environmental impacts than the servicesector. Most of the studied considered environmentaltraining to be an independent variable rather than adependent or mediator variable. Mostly beneficiaries ofenvironmental training were top managers and otheremployees of the company but less trainings wereprovided to customers and suppliers.

    Environmental training was found to be afundamental requirement for any successful activity ofenvironmental management, conservation and recycling ofresources but further studies should be done consideringmixed methodologies and comparative perspectives.

    Jabbour et al. (2013) verified the influence ofEnvironmental Management (EM) on Operationalperformance (OP) in Brazilian automotive companies.They also analyzed whether Lean manufacturing (LM) andHuman resources (HR) interfere in the greening of thesecompanies. A conceptual framework was proposed andbased on theoretical background a questionnaire wasdeveloped and sent to the managers occupying highestpositions in production/operations areas. The data wascollected from 75 companies and data was analyzed usingstructural equation modeling. The following results wererevealed: (1) The model tested an adequate goodness of fitshowing that the overall relationship betweenEnvironmental Management and Operationalperformance; between Human resource, Leanmanufacturing and environmental management tend to bestatistically valid. (2) Environmental Management tends toinfluence Operational Performance positively butstatistically in a weak manner. (3)Lean manufacturing hada greater influence on Environmental managementcompared to the influence of Human resource onEnvironmental Management.(4)The relationship betweenHuman resource and Environmental Management wasfound to be positive but its significance was less ascompared to other evaluated relationships.

    Jabbour (2013) evaluated the main characteristics ofgreen teams in Brazilian companies and analyzed the

    relationship between green teams and maturity level ofEnvironmental Management in those companies. A surveyof 94 companies with ISO 14001 certification and amultiple case study of four industrial companies was donebased on the conceptual background of environmentalmanagement and green teams. The results indicated that82% of the studied companies had cross functional greenteams (members from different departments) and 65% hadfunctional green teams i.e. individual department teams.Moreover organization with more advanced environmentalmanagement systems used green teams more intensivelythan organization with less advanced environmentalmanagement systems.

    Jabbour et al.(2008) analyzed the theoretical modelproposed by Jabbour and Santos(2008) regarding therelationship between huma...

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