Impact of Green Human Resource Management Practices on Organizational Citizenship Behavior: Job Satisfaction: The Study of ABC Manufacturing Company in Sri Lanka.

Impact of Green Human Resource Management Practices on Organizational Citizenship Behavior: Job Satisfaction: The Study of ABC Manufacturing Company in Sri Lanka.

Weerasooriya, P.G.W.M.G.T , Rebecca, E  & Jawad, M. M

Department of Human Resource Management, Faculty of Commerce and Management Studies University of Kelaniya

DOI: https://dx.doi.org/10.47772/IJRISS.2024.8090207

Received: 27 June 2024; Revised: 10 July 2024; Accepted: 17 July 2024; Published: 15 October 2024

ABSTRACT

Green Human Resource Management (GHRM) features environmental management with HR practices, with a focus on workplace sustainability, and environmental responsibility. This approach aims to foster a practice of concern for the environment and green practices among employees. Organizational Citizenship Behavior (OCB) is defined as voluntary, extra-role behaviors conducted by employees that enhance an organization’s success but are not part of their formal job responsibilities. These actions, such as supporting coworkers and being proactive, improve overall organizational effectiveness. This study intends to contribute to fill the empirical gap in the existing literature within Sri Lankan context. Hence this was a quantitative and cross- sectional study which was based on an organization in manufacturing industry. The main aim of this study is to analyze the impact of green human resource management on organizational citizenship behavior through the mediating role of job satisfaction in ABC manufacturing companies in Sri Lanka. A survey was applied to a sample of 327 collaborators working in the manufacturing industry at ABC Company. The result shows that there is a moderately positive impact of green human resource management on organizational citizenship behavior with the mediator effect of job satisfaction. This study proves to be important when understanding the individual effects caused by a green human resource management system.

Keywords: green human resource management; organizational citizenship behavior; job satisfaction

BACKGROUND

Human Resources Management (HRM) plays a key strategic role in managing, learning and developing organizations. It is important when comparing other corporate operations since human resources must work closely with multiple departments, functions, geographical locations, and leadership teams to better observe the qualities that can have an advantageous effect on company performance (Fita, 2017). Thus, HRM has been associated with various features and is a constantly changing field. Economic, political, social, and environmental variables all substantially impact this diversity. As a result of these factors, several trends in human resource management emerge from time to time. Adopting Green Human Resource Management (GHRM) practices is one of the most prevailing trends associated with such an environmental factor (Sharma et al., 2022). Recent discussions of the effects of sustainable organizational practices on employees’ environmental commitment and well-being have been centered on the emerging behavioral perspective on GHRM practices (Kim & Park, 2017). This perspective indicated the existence of a rational cost-benefit analysis between green, organizational, and socially desirable results. Successful green organizational practices, or GHRM practices, depend on the “human element.” (Amrutha & Geetha, 2020). GHRM practices are always associated with environmental development and the entire workforce to achieve organizational goals.

Many organizations have concentrated on a green HRM approach to lower the numerous ecological issues caused by industrialization and attain competitive advantages through a cost-cutting strategy (Saifulina et al., 2020).  Therefore, organizations should encourage their employees to improve green attitudes, skills, and behaviors   (Ercantan & Eyupoglu , 2022).

GHRM promotes sustainability through integrating green mind sets and human resource management practices. As a result, it entails the establishment & implementation of green policies across multiple sub-functions of HRM (King  & Cohen, 2017). Because GHRM practices encourage employee behavior towards the environment, such practices help to control adverse environmental impacts while enhancing employee perception towards their employer. It enables sustainable organizational performance (Hameed et al., 2019). GHRM is primarily concerned with engaging employees in environmental decisions, increasing environmental awareness, and encouraging green skills, attitudes, and behaviors through green recruitment, green training & development, green reward system, green performance evaluation, etc. (Freire & Pieta, 2022 ). This ensures that employees contribute wholeheartedly to the fulfilment of organizational values. (Faisal, 2023).

Employees with positive attitudes and loyal mindsets intend to perform their best for the company and perform tasks voluntarily beyond the job description. These behaviors are called organizational citizenship behaviors (Boiral et al., 2013). Accordingly, OCB will gain advantages from several organizational factors, such as the work environment, job security, job facilities, rewards, supervisory support, and practices, which help to encourage and develop employee competencies and satisfaction (Suifan, 2015). Among those, behavioral competencies can have a huge impact on organizational success or failure rather than technical competencies. Cultivating green skills, abilities, and behaviors in employees’ minds is one strategy for encouraging their behavioral competencies (Albino, 2018). Employees are encouraged to participate in green behaviors while integrating organizational purposes. Employees might be encouraged to adopt voluntary green behaviors by monitoring and assessing their environmental performance. (Freire & Pieta, 2022). Accordingly, OCB is crucial for the effective functioning of any organization. It may assist organizations by enhancing productivity, improving morale, developing coworker cooperation, and creating an ideal workplace, all of which can lead to higher employee and customer retention rates (Yaakobi & Weisberg, 2020). With globalization, every corporate organization must work more effectively and efficiently to compete in today’s world. Every organization strives to achieve its objectives by enhancing employee performance. In that case, many organizations nowadays are operating their businesses by giving priority to the employees and they attract & retain customers through treating employees well. (Ghani et al., 2022).

Job satisfaction (JS) plays a key role here. This is due to the reality that job performance cannot be enhanced without increasing employee satisfaction. Employees’ psychological wellbeing is often indicated by their job satisfaction. Voluntary extra-role behavior in organizations, often known as OCB, can benefit individual psychological satisfaction. Employees are overly concerned about their workplace conditions and the nature of their jobs. Their level of satisfaction varies depending on whether the employer offers them benefits beyond compensation that are appropriate for their employment. (Inuwa, 2016). It means that more satisfied workers exhibit more pro-social and citizenship behavior. As a result, organizational citizenship behavior is significantly associated with overall job satisfaction. Job satisfaction predicts organizational citizenship behavior because it is required for the presence of organizational citizenship behavior (Shrestha & Bhattarai, 2022). On the other hand, when there is a connection between an individual’s and an organization’s values, the outcome is positive; that is, it contributes to better job satisfaction. That is, green HRM practices may help boost job satisfaction by creating an employee-friendly environment at the workplace (K, V., & A, S, 2021). Only 45% of employees at ABC manufacturing Company report feeling engaged at work, and Only 25% of employees are willing to work voluntary overtime, indicating a lower level of discretionary effort. Another issue is, unauthorized absenteeism at ABC Company is at 12%, leading to lower efficiency and voluntary turnover rate is 20%. Accordingly, the current study aims to examine the impact of green human resource management practices on organizational citizenship behaviors with the mediating effect of job satisfaction.

Theoretical Framework and Development of Hypotheses

The concept of Green HRM emerged in association with a set of people management practices that aim to increase benefits to people, profit and the planet through the reduction of adverse impacts on the environment, and reduction of costs while increasing people’s mindsets and behaviors toward the environment. This aim can be accomplished through the Ability Motivation Opportunity (AMO) theory.

Increasing green attitudes and skills, encouraging employees to engage in environmentally responsible behaviors and providing opportunities to engage in green behaviors such as decision-making regarding environmental issues, and knowledge sharing is provided by the AMO framework. This indicates implementing HRM practices that improve employee skills and performance, attracting employees with green behaviors, developing them, encouraging their commitment and motivation, and providing opportunities for employee improvement.

The Role of Green HRM on Organizational Citizenship Behavior

Providing organizational support for environmental initiatives influences several job-related factors, including satisfaction, recognition, and empowerment. This assistance further affects the turnover rate. Responsible organizations promote employee satisfaction through environmentally friendly practices, which affect voluntary workplace behaviors. According to Snape and Redman (2009), there is an influence of perceiving and experiencing green HRM practices on employee voluntary behaviors that enhance environmental sustainability. Further, integrating Green HRM practices into an organization could generate a sense of organizational commitment, environmental responsibility, and shared values, which impacts employees’ voluntary behaviors (Freire & Pieta, 2022). Furthermore, according to Silvester et al, (2019), organizations with green values and which are implementing green concepts with human resource management could have a significant influence on organizational citizenship behavior.

H1: There is a significant impact of Green HRM Practices on Organizational Citizenship Behavior.

The Role of Job Satisfaction on Organizational Citizenship Behavior

Job satisfaction represents an individual’s perspective on their job, shaped by how they perceive their tasks and the alignment between their values and the organization’s goals. (Fitrio et al., 2019). Employees’ positive emotional state is shown in their job satisfaction. In other words, when individuals are satisfied with their job roles, they are more cooperative and responsible. This results in a favorable relationship between overall job satisfaction and the presence of positive workplace attitudes and behaviors. This relationship becomes especially strong and visible in factors such as employee progression prospects and supervisory interactions (Shrestha & Bhattarai, 2022). According to Cho et al. (2009), a higher level of job satisfaction affects employee loyalty towards their employer, turnover intention & established citizenship behavior. A correlation exists between four aspects influencing job satisfaction: company policies, supervision and promotion, the nature of the job, and pay and co-workers. Simultaneously, four dimensions characterizing Organizational Citizenship Behavior (OCB) are altruism, courtesy, sportsmanship, and civic virtue. The study revealed that elements of job satisfaction hold varying degrees of impact on the OCB dimensions. Specifically, company policies, supervision, and promotion exhibit a favorable influence on altruism, civic virtue, and courtesy. Employees contribute positively to altruism and civic virtue, while pay demonstrates a positive association with courtesy (Hemakumara, 2020). According to Purwanto et al., (2021). Job satisfaction cannot be determined solely by physical observation, and increased job satisfaction influences employee OCB and affects the achievement of company goals.

H2: There is a significant impact of job satisfaction on Organizational Citizenship Behavior.

The Role of Green HRM Practices on Job Satisfaction

Green Human Resource Management (HRM) aims to reduce the negative impact on the environment by responsibly managing the use of natural resources. The adoption of green HRM practices affects not only the workforce and the organization but also contributes to better resource efficiency. Further, it influences employees’ health and satisfaction (Seema & Vanisri, 2021). Employees feel a sense of active participation in beneficial environmental initiatives when they are conscious of environmental issues aimed at creating a better, improved, and safer ecosystem. Sustainable human resource management (HRM) develops an atmosphere where employees and employers regard their actions as meaningful contributions by emphasizing environmentally focused intentions and principles held collaboratively. As a result, they create a sense of purpose in their professional tasks, which affects job satisfaction. (Shafaei et al.,2019). Here, green reward practices play a key role compared to other green HRM practices. Green reward practices include financial and non-financial incentives to encourage employees to meet environmental targets while adhering to strategic incentive management. Non-financial benefits, such as praise and recognition, can satisfy them more than financial benefits. Accordingly, green rewards and remuneration also contribute to employee satisfaction” (Huo et al., 2022). Accordingly, every meaningful GHRM practice, such as green recruitment, green performance management, and green training & development, leads to positive outcomes on job satisfaction. Efforts such as supporting a good work-life balance system, giving chances for skill development and training, and encouraging employee participation in environmental efforts & projects influence job satisfaction by fostering in employees a sense of well-being, engagement, and fulfilment (Senevirathne & Kularathne, 2020).

H3: Green HRM Practices have a significant impact on job satisfaction.

The Role of Green HRM Practices on Organizational Citizenship Behavior with the Mediating Effect on Job Satisfaction

The influence of Green Human Resource Management (HRM) practices on employee job satisfaction and favorable employee behaviors is partially explained through the viewpoint of Social Exchange Theory. This conceptual framework enhances comprehension of employee interactive conduct within the context of responsible organizational practices. As organizations adopt environmentally responsible approaches, employees are motivated to exceed their typical job tasks. This is grounded in the premise that the organizational environment impacts employee satisfaction, subsequently fostering constructive employee behaviors. (Freire & Pieta, 2022).

Moreover, Green HRM practices foster an initiative-taking employee demeanor that extends beyond their assigned role. This dual effect extends benefits to both the organization and society at large. These activities include mitigating detrimental environmental impacts, engaging in eco-friendly behaviors, and advancing societal welfare. Importantly, these activities positively correlate with Organizational Citizenship Behavior (OCB) related to employment. The application of environmentally conscious and employee-centric Green HRM practices enhances employee satisfaction. Consequently, employees are more inclined to exhibit discretionary behaviors that transcend routine tasks. (Silvester et al., 2019).

H4: There is a significant impact of Green HRM Practices on Organizational Citizenship Behavior with the mediating effect of Job Satisfaction.

Conceptual Framework

METHODOLOGY

Research Context

The research gathered primary data using a systematically designed self-administered questionnaire. In the current study, the population is known to the author. The present study is about a multinational company within the manufacturing industry located around Colombo for the population of the study. The current workforce comprises approximately 4000 employees, and 3807 of the current workforce under senior management level serve as the population for this research study. According to the Morgan table, the Sample size was 350. Accordingly, a questionnaire was distributed among the sample and out of 350, 327 responses were received. Regression analysis was done using SPSS.

Questionnaire and Measures

The questionnaire consisted of four sections: (1) demographic characterization of the sample, (2) green HRM, (3) OCB, (4) Job Satisfaction, and the last section contained questions. Green HRM and OCB were measured by adapting validated scales from literature indicated in Table 3.1. All the scale ratings consisted of five points, ranging from 1 (“strongly disagree”) to 5 (“strongly agree”); job satisfaction was measured by a 5-point Likert scale ranging from where the possible answers are 1. (“Very dissatisfied”) to 5 (“very satisfied”).

Table 1

Source: Freire and Pieta (2022)

Data Collection

The research gathered primary data using a systematically designed self-administered questionnaire. This questionnaire was developed utilizing established measurement scales referenced in Table 3.1 and the questionnaire was distributed among the sample, and 327 responses were received. Among respondents, 62.4% are males. Moreover, 38.2% of the respondents are between 26 – and 35 years old, and most of the responses were received from the production department, which is 63%.

Data Analysis

Primary data was gathered and then processed for analysis. Data were entered into the SPSS, and, to establish reliability, Cronbach’s Alpha coefficient was employed for both scales and the sample. Construct validity was confirmed using the KMO test and factor analysis. Descriptive statistics examined individual variable behavior, while multivariate assumptions were assessed. Correlation and regression analyses were employed to assess advanced hypotheses. The Sobel test was utilized to assess mediation.

RESULTS & DISCUSSION OF FINDINGS

This section provides the results of the present study.

Table 2 indicates the values of the descriptive statistics: the mean and standard deviations.

Note: N = 327.

Source: Analyzed data, 2023

The mean value of organizational citizenship behavior is 3.9230, indicating a high level of OCB among the respondents in the sample. The standard deviation [SD] 0.03004 lies between -2 and +2, and the mean value could be statistically accepted. The independent variable, Green HRM practices, has a 3.7968 mean value and SD of 0.02244, respectively, which is statistically accepted. Furthermore, job satisfaction has a 3.6297 and 0.02127 mean value and SD value, respectively, which are statically accepted.

Table 3 Correlations of the construct-related variables.

**. Correlation is significant at the 0.01 level (2-tailed).

Source: Analyzed data, 2023

Table 4

Source: Analyzed data, 2023

DISCUSSION OF FINDINGS AND CONCLUSION

Findings

The current study discovered that there is a moderate positive correlation between Green HRM Practices and Organizational Citizenship Behavior (r=0.621 and Sig.2-tailed 0.000). Moreover, a significant impact was found between the mentioned two variables (R square=0.385and Sig. = 0.000). Therefore, H3 was accepted, and there is a significant relationship between GHRM and OCB. Further, there is a moderate positive correlation between job satisfaction and OCB. (r= 0.607 and Sig.2-tailed 0.000). Moreover, H2 was accepted, which indicated that there is a significant relationship between job satisfaction and OCB (R square= 0.369 and Sig. = 0.000). The current study has identified, after the comparison of the findings with previous studies, that there is a moderately significant positive impact of GHRM on job satisfaction (r= 0.688 and Sig.2-tailed 0.000). Moreover, a moderately significant impact was found between GHRM and job satisfaction (R square= 0.473 and Sig. = 0.000). Therefore, H3 was accepted, which mentioned that there is a significant relationship between GHRM and job satisfaction. To test the mediation effect of job satisfaction, an online Sobel calculation was used. As the p-value of the Sobel test statistic is less than 0.05, the Sobel test statistic is statistically accepted. A strong positive correlation is found between positive correlation is found between job satisfaction as a mediator impact on Green HRM practices and OCB (r=0.711) According, job satisfaction has a significant mediation impact on the relationship between Green HRM Practices and Organizational Citizenship Behavior. Hence, H1, H2, H3, and H4 are accepted, and all three specific objectives and main objectives of the current study were achieved.

Practical Implications

The findings of this study present the impact of job satisfaction as a mediator on the relationship between Green HRM and OCB, with certain implications for the manufacturing industry and the rest of other industries. That leads to maintaining satisfied employees and creating a supportive staff within the organization. Due to the COVID-19 global pandemic, economic crisis and global warming, several organizations are moving to strategic solutions to gain sustainable development in a competitive, dynamic corporate world. The green concept is one solution to cost-cutting and retaining talents while protecting their surroundings. According to the current study, green HRM can be used advantageously for all three aspects people, profit, and planet. Therefore, the current study provides insight mainly into the corporate sector. Furthermore, this study provides insight to policymakers in the organization to enhance green attitudes and encourage voluntary behaviors within the organization. They should mainly focus on awareness about green concepts within the organization. Improving job satisfaction through frequent awareness is a major action to improve OCB within the organization. Integrate Green HRM practices into Organizational Strategy, employee participation in decision-making and project implementation, recognition and rewards for green initiatives, Monitoring and Evaluate Green HRM Practices further encourage extra voluntary behaviors of employees, and it supports achieving sustainable development through the commitment to the 3Ps concept. Although there are several studies regarding the impact of job satisfaction as a mediator on the relationship between Green HRM and OCB in the international context, it is difficult to find studies relating to the current research area in the Sri Lankan context and especially in a recently acquired company in manufacturing industry a. Thus, the findings of the study contribute to the existing body of knowledge to fill the gap in the current research area.

LIMITATIONS, DIRECTION FOR FUTURE RESEARCH & CONCLUSION

Despite the considerable implications, some limitations need to be considered severely. . The study’s main objective was to identify the impact of job satisfaction as a mediator on the relationship between GHRM and OCB in ABC Manufacturing Company. Therefore, the first limitation is that the current study is only relevant to one organization in the manufacturing industry. This reason has resulted in the study being a more subjective one into a particular organization. Furthermore, the current study considered all the other factors to remain constant. However, the results of the study may be influenced by other factors such as family, distance to work, the situation of the country, etc. Moreover, this research only used the questionnaire method for data collection. It is not sufficient to gather more accurate information. Furthermore, the impact of Green HRM on OCB may be influenced by employees’ perceptions, which can be challenging to capture comprehensively. Accordingly, these limitations underscore the need for a cautious interpretation of the study’s outcomes and their broader applicability.

Based on the limitations identified previously, the current study presents a few directions for future research. Conducting research based on diverse sectors can provide more detailed and accurate results of how Green HRM impacts Organizational Citizenship Behavior. Further, considering several external factors like family distance and the country’s situation will provide a more holistic view, acknowledging that these elements might influence the study outcomes. To enhance accuracy, future research should use mixed methods of data collection beyond questionnaires. Combining interviews or observational methods provides a correct view of employees’ perceptions. Furthermore, further study should determine how individual perspectives influence the relationship between OCB and Green HRM. Future research can address these factors to overcome this study’s limitations, generating more reliable and useful conclusions.

The current study aimed to extend the present knowledge on the relationship between Green HRM Practices and Organizational Citizenship Behavior with the mediating effect of job satisfaction within ABC Subsidiary Company in the Manufacturing industry. Subsequently, it reflects that there is a positive relationship between Green HRM Practices and Organizational Citizenship Behavior, and there is a significant effect from the mediating variable, job satisfaction. Accordingly, it shows that when the improvement of green HRM practices in the organization encourages employees to engage in extra voluntary behaviors, which supports the company’s commitment to the 3Ps concept. Finally, the present study expands the knowledge on the effects of green HRM strategies and provides recommendations to organizations that will further improve of 3Ps commitment through cultivating green behaviors among employees.

To overcome those limitations, organization can scheduling regular training sessions on sustainability and environmental principles. This helps employees appreciate the significance of their role in accomplishing the company’s environmental goals.  Another suggestion is implementing recycling programs, energy-saving efforts, and waste reduction projects. As well as, Offer Employees that suggest and implement environmentally friendly campaigns are entitled to bonuses is another suggestion to improve environmental awareness. Create and implement rules that encourage remote work, carpooling, and public transit to cut carbon emissions also help to enhance green practices within the organization.

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