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The Impact of Green HRM on Employee Engagement with special reference to

Banking Sector

Ms. Madhuri Gehi

Asst. Professor, IPS Academy, IBMR Indore, India

[email protected], Mob- +919111424942

ABSTRACT: In recent times organizations are taking usage of natural environment such
as land, coal, minerals, water and tree as natural resources and this Green movement across
the world gave birth to Green HRM. Green human resources management refers to set of
principles, systems, and practices used to encourage employees to adopt green behavior in
the workplace to promote green skills in HR for the employee awareness and commitments
on the issues of sustainability. It involves adaption of environment-friendly HR initiatives
resulting in greater efficiencies, reduces costs and better employee engagement and retention
which in turn, help organizations to reduce employee carbon footprints by the techniques of
electronic filing, car sharing, job-sharing, tele-conferencing and virtual interviews,
recycling, telecommuting, online training, energy-efficient office spaces etc.

Thus Green HRM started once a employee being hired online through
online job advertisements shows companies social and ecological concerns, selecting
candidates to have green behaviour, induction initiatives designed to facilitate consolidation
of new employees with company’s green culture and values. providing digital training to
reduce waste, save energy and resources, recognizes employees sustainable performance and
recognizes employees green contribution towards company’s strategic sustainability goals.
The paper focuses on impact of green human resource practices i.e recruitment, training and
development, performance management and compensation on employee engagement in
banking sector. Engaging employee for green behaviour results in transforming normal
employee behaviours to green behaviour that help the banking sector to become ‘Greener’.

KEYWORDS: Green human resource management, Green recruitment, Green Selection,

Green performance management, green, Employee engagement.
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CONECPTUAL FRAMEWORK:

The word “Green” stands for nature, growth, harmony, wealth and stability. HRM refers to
the acquisition, selection of human resource , trained them ,compensating them , engaged the
workforce at workplace. Green HRM follows the principle of sustainability development
which refers to improving the economic well being and quality of work life without
compromising future generation’s ability to meet the needs. Green HRM is the use of HRM
policies to promote the sustainable use of resources within organizations and, more generally
promotes the causes of environment sustainability” (Marhatta & Adhikari, 2013, p. 2).
GHRM is directly responsible in creating green workforce that understands, appreciates, and
practices green initiative and maintains its green objectives all throughout the HRM process
of recruiting, hiring, training, compensating, developing, and advancing the firms human
capital (Mathapati, 2013, p. 2). It refers to the policies, practices, and systems that make
employees of the. organization green for the benefit of the individual, society, natural
environment, and the business (Opatha & Arulrajah, 2014, p. 104). The purpose of Green
HRM is to create, enhance and retain Greening within each employee of the organizations
give a maximum individual contribution to each of the four roles, i.e., preservationist,
conservationist, non-polluter, and maker. The concept Green HRM journey starts at
recruitment

GREEN HRM PRACTICES:

1. Green Recruitment: The word “Green Recruiting” is coined by John Sullivan, HR

Consultant and Professor of Management at the San Francisco State University’s College of
Business in June 2007. He quoted “If you want an edge in recruiting, green recruiting is the
way forward. Green recruitment means paper less recruitment process with an objective of
minimum environmental disturbance. Approaching potential candidates through
advertisement is not worthful nowadays, even companies are reducing recruitment cost and
creating a green difference by posting job requirements on email and career’s site. It involves
sending online job descriptions, applications to candidates, hiring potentials through video
conferencing, online interviews and placed them. Green recruitment gives platform where
organization differentiated them from other marketing leaders by encouraging paper less
office, turning off lights, use of e-banking services etc can make a wonder.
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2. Green Training and development: Training and development enhances employee skills,
knowledge, attitude, bring changed behaviour towards achieving environmental goals. Green
training and development is a vital section of Green HRM, as it imparts green knowledge and
value to the entire process of hiring, developing, rewarding and building green employees
who value the environmental sustainability to save energy, minimizes waste and creates
realization towards environment values, practices and programs Green Trianing nad
development involves providing training through virtual platform, shared the training content
digitally to add green values to trainees as digitalization promotes an eco-friendly attitude.

3. Green Performance Management: Performance management refers to evaluate and

monitor the performance of employee. Likewise Green performance management integrated
environmental management into performance systems. 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. The objective of green
performance management is to have a measurable outcome of an organization’s ability to
meet its environmental objectives and targets. Employee green performance measure the
extent to which resources are effectively utilized, employee innovative environmental
initiatives and employee contribution to Corporate Environmental Management Initiatives.
This measures the engagement of employee in taking actions, doing activities and producing
results in respect of greening during specific period of time.

4. Green Compensation: Green compensation refers to recognition given to employee in

terms of services rendered and efforts improving environmental influences. It is the result of
the success of employees in their performance (PM) and works as proof that a company’s
strategic sustainability goals are being accomplished (at least up to some degree).
Compensation given in the forms of :

1. Monetary-based rewards – in the form of salary increase, cash incentives, and bonuses;

2. Non-monetary rewards – sabbaticals, special leaves, discounts, or gifts to employees;

3. Recognition-based rewards – highlighting the green contributions of employees through

wide publicity, public praise, and appreciation of sustainability efforts by the top
management.
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LITERTAURE REVIEW :

Rashi Baliyana , Misbah Fatima, (2021) study provides the employees and the organization a
sense to increase the work efficiency and enhance the organization’s environment to increase
the employee’s involvement and dedication towards the environment.

Z hu, J.; Tang, W.; Wang & H.; Chen, Y. (2021) in their research identified that GHRM can
significantly predict the employee green behaviour at work-place and organizations can
effectively improve the employees’ environmental behaviors by educating the organization’s
green values through human resource management.

Kanwar Pravir Singh, Dr Krishna Nath Pandey, (2020) analyse the Green HRM practices
affecting employee engagement in the auto clusters in Delhi/NCR. Research identify and
extract the key Green HRM practices in the auto clusters, and identify the significant
relationship between Green HRM practices and employee engagement. The quantitative
cross-sectional study design approach was adopted, and data collected from 300 employees
and analysed using exploratory factor analysis (EFA) and multiple regression analysis, in
SPSS 25.

Mohammed Aboramadan, (2020) suggested the effects of green human resource management
on employee in-role, extra-role and green innovative work behavior (GIWB). Their
investigation also demonstrated the role of GHRM in context of higher education.

Prof. Ritu Saxena , Dr. Vivek Pachauri, (2020) emphasizes upon developing the important
HR practices which are required to achieve the objectives of Green HRM. Study suggested
some suggestions and recommendations to the organizations in the form of positive and
inclusive HR practices which are people-centric to achieve the ultimate objective of adding
value towards organization Green value.

Swati Tomer, Dr. Geeta Rana, (2020) revealed the awareness about GHRM concept by
adopting green practices within the organization to achieve environmental sustainability.

Jayashree, Sandeep Patil & A P Sarode ,(2019) observed the contribution of employees in
effective implementation of New HRM practices and procedures. Designed Questionnaire
and collected data from 110 employees from manufacturing units and 82 from service
industries and Concluded that contributions of employees make considerable difference in
implementing EMS (Environmental Management System) in the organization.
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Jyoti Koshish, (2019) research work described two areas: a. A Model of HR forms associated
with Green HRM. b. Nature and degree of green HR activities embraced by organization
constrained. The study started with the survey of writing on the HR parts of ecological
administration, at that point looks at the HR job, and proposes a procedure model of HR
issues included in green HRM.

Yap Peng Lok, Stanley &Tay Lee Chin, (2019) explained the direct relationship between
green HRM practices and employee sustainable engagement. Hypothesis was formulated to
provide the logical relationships between green HRM practices and employee sustainable
engagement. This study helps the organizations to attract the investors. Engaged employees
are being to communicate to the business investors about the organizations' genuine efforts in
conserving resources. The study provides comprehensive study on employee sustainable
engagement useful to researchers and managers in various industries to understand employee
sustainable engagement.
Nandini Borah, Papori Baruah, (2014) attempt to trace the evolution of the concept of
‘employee engagement’ and added value to the current body of knowledge by performing
a systematic review of the existing literature. They also proposed a comprehensive overview
of the construct and proposed a working definition of employee engagement by using
integrated literature review method.

OBJECTIVES OF STUDY :

1. To understand the various Green HRM practices adopted by banking sector.

2. To analyse the impact of Green HRM practices on Employee Engagement.

3. To measure the impact of demographic variables in adopting Employee Engagement in

banking sector.

RESEARCH METHODOLOGY:

The Universe- The universe of study is Indore Division (banking sector).

The Study- This research investigation is empirical in nature, in which the impact of Green
HRM on Employee Engagement in banking sector is measured. The study also measures the
impact of demographic variables on Employee Engagement and Green HRM practices.
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Sampling Technique- The convenient sampling used for data collection.

Sampling Units- Data collected from banking sector

Sample Size- The data is collected from 80 respondents.

HYPOTHESIS:

H01: There is no significant impact of Green HRM on Employee Engagement.

H11: There is significant impact of Green HRM on Employee Engagement.

H02: There is no significant impact of Age on Employee Engagement .

H12: There is significant impact of Age on Employee Engagement.

H03: There is no significant impact of Gender on Employee Engagement .

H13: There is significant impact of Gender on Employee Engagement .

INTERPRETATION AND DISCUSSION :

I. Impact of Green HRM on Employee Engagement: interpreted through Regression

Analysis through SPSS.

Descriptive Statistics
Std.
Mean Deviation N
GREENHR 81.7000 14.73513 80
M
EMPEGG 50.9000 6.54411 80
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Correlations.
GREENHRM EMPEGG
GREENHRM Pearson Correlation 1 .647**
Sig. (2-tailed) <.001
N 80 80
**
EMPEGG Pearson Correlation .647 1
Sig. (2-tailed) <.001
N 80 80
**. Correlation is significant at the 0.01 level (2-tailed).

Confidence Intervals
95% Confidence Intervals
Pearson Sig. (2- (2-tailed)a
Correlation tailed) Lower Upper
GREENHRM - .647 <.001 .498 .759
EMPEGG
a. Estimation is based on Fisher's r-to-z transformation.

Interpretation: r value is 0.647 which shows moderate degree of correlation between

Green HRM practice and Employee engagement for banking employees.

2. Impact of Age on Employee Engagement:

Descriptive Statistics
Std.
Mean Deviation N
AGE 1.80 .753 80
EE 50.90 6.544 80

Correlations
AGE EE
Pearson AGE 1.000 -.066
Correlation EE -.066 1.000
Sig. (1-tailed) AGE . .281
EE .281 .
N AGE 80 80
EE 80 80
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Model Summaryb
Adjusted R Std. Error of Durbin-
Model R R Square Square the Estimate Watson
a
1 .066 .004 -.008 .756 2.532
a. Predictors: (Constant), EE
b. Dependent Variable: AGE

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression .194 1 .194 .339 .562b
Residual 44.606 78 .572
Total 44.800 79
a. Dependent Variable: AGE
b. Predictors: (Constant), EE

Interpretation :

The value of F is 0.339, which does not reaches to statistical significance level with p value
0.562 which is greater than 0.05 alpha level shows no significant difference between two
independent groups. That is there is no significant impact of Age on Employee Engagement.

3. Impact of Gender on Employee Engagement:

Descriptive Statistics
Std.
Mean Deviation N
GENDE 1.60 .493 80
R
EE 50.90 6.544 80

Correlations
GENDE
R EE
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Pearson GENDE 1.000 -.013

Correlation R
EE -.013 1.000
Sig. (1-tailed) GENDE . .456
R
EE .456 .
N GENDE 80 80
R
EE 80 80

ANOVAa
Sum of
Model Squares df Mean Square F Sig.
1 Regression .003 1 .003 .012 .912b
Residual 19.197 78 .246
Total 19.200 79
a. Dependent Variable: GENDER
b. Predictors: (Constant), EE

Interpretation : The value of F is 0.012 which does not reaches to statistical significance
level with p value 0.912 which is greater than 0.05 alpha level shows no significant
difference between two independent groups. That is there is no significant impact of Gender
on Employee Engagement.

CONCLUSION & IMPLICATIONS : It can be concluded from study is that Green HRM
practices adopted by banking sector i.e Green Recruitment, Green training and development,
Green Performance and compensation together have significant effect in influencing
Employee Engagement, as these practices create awareness among employees to become
green, think green and do green in order to have environmental sustainability in organization.
On this line, HR manger need to redesign all the jobs and processes in such a way that they
address the industry environmental goals and build higher level of employee engagement to
perform green practices. It was also found that demographic variables of Green HRM i.e age
and gender are not associated with employee engagement so management should incorporate
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environmental consideration while recruiting those candidates who are familiar with green
values and norms. It should provide ample opportunities to the employee to involve and
participate in green workshops and introducing green whistle-blowing and help-lines
(Renwick et al, 2008 and 2013), to address green issues. However training and development
was significantly impacting the employee engagement, this leads management to provide
online training to train future green managers. More specifically management can reward
extra remuneration to those employees acquiring green skill in banking sector. Thus study
provide with evidence on the relative significance of green HRM practices in enhancing the
firm’s successful and efficient implementation of environmentally related policies and
strategies.

LIMITATION & FUTURE SCOPE OF STUDY: The current research has several
limitations. Firstly, study conducted only on private sector bank. Therefore the research may
not be the fully representative of banking population. Future research should concentrated on
public bank also to show the over all impact of green hrm practices on employee engagement.
Secondly, only four dimensions of Green HRM used for study so future researchers uses
Green HRM in detail and then link with employee engagement , employee satisfaction and
organizational citizenship. Thirdly, Green HRM has significant related with employee
engagement considering demographic variables. Further research can be extended by
considering on various components of employee engagement and its association with
employee engagement.

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