The Perceived Green Human Resource Management among HR Personnel in Malaysian Utility Company

The Perceived Green Human Resource Management among HR Personnel in Malaysian Utility Company

Aida Abdullah¹, Farihah Hassan¹, Ahmad Faiz Yaakob^1*, Suhaimi Hj Abdul Samad¹, Norfadzidatulizwa Farouk Shah²

¹Faculty of Administrative Science and Policy Studies, Universiti Teknologi MARA, Seremban Campus, Negeri Sembilan Branch, 70300, Seremban, Malaysia

²Business Support Office (Melaka), TNB Global Business Solutions, Tenaga Nasional Berhad, Melaka, Malaysia

Corresponding Author

DOI: https://dx.doi.org/10.47772/IJRISS.2024.807222

Received: 24 June 2024; Revised: 10 July 2024; Accepted: 15 July 2024; Published: 20 August 2024

ABSTRACT

Scholars have examined green human resource management (GHRM) as a green personnel management approach that corresponds with the social responsibilities of the services sector and improves business performance sustainability. Consequently, it is imperative to comprehend the green practices of a utility company. This comprehension may have substantial implications for employment, performance evaluation, training development, rewards system, and green behaviors. Consequently, the objective of the study is to assess the perceived level of GHRM among staff in the human resources department of a utility company, both management and non-managerial. This study employed a quantitative approach, and the self-administered questionnaires were distributed through a random sampling method. The survey questions were adapted from past studies, and by using descriptive analysis, the findings showed that GHRM was observed highly (m = 4.14). The perceived level of GRHM practices was significantly influenced by the organization’s green practice claims, employer green branding, and the utilization of formal and informal communication to increase interest in green practices Additionally, the success of green practices is contingent upon the attention given to compensation, rewards, benefits, and services. Therefore, the study determined that the indispensable investment in GHRM fosters an environment conducive to green practices and facilitates the fulfillment of economic and social obligations.

Keywords: Green human resource management, sustainability, utility company, employee perception, organization effectiveness

INTRODUCTION

Green human resource management (GHRM) encompasses a company’s internal procedures that involve effectively managing staff in a manner that encourages and supports environmentally friendly behaviours [28]. Research has explored the influence of eco-friendly practices, such as recruitment procedures, employee training and growth, performance evaluation, remuneration, perks and services, and labour relations, on the environmental performance of organizations.

These characteristics also impact the environmental habits of employees, such as their ability to engage in sustainable actions and their comprehension of the implementation of GHRM in the organization. Consequently, this fosters pro-environmental conduct and mitigates the influence of business operations and industry on climate change and global warming [27], [5]. Hence, evaluating employees’ understanding of GHRM is essential to ensure their activities align with the organization’s vision and objective.

LITERATURE REVIEW

The literature review explores various facets of GHRM strategies within organizational contexts. According to Renwick [30] the integration of corporate environmental management into human resource management is known as green HRM. It covers key human resource (HR) practices, including staffing, training and development, performance management, compensation and benefits, and labour relations, all aimed at fostering environmental sustainability. Research indicates that integrating green practices into HR functions enhances organizational performance and competitiveness and cultivates employee commitment to environmental responsibility. This review synthesizes findings from multiple studies to underscore the importance of GHRM in promoting sustainable business practices and its positive impacts on employee behaviour and organizational outcomes.

Staffing

This HR strategy strives to provide the business with the appropriate number and quality of people, and its scope includes recruiting, selection, the job analysis process, and the preparation of individual job descriptions [25]. Internal or external recruitment demonstrates the organization’s preference for environmentally conscious personnel [23]. Employee job descriptions also transform environmental commitment into additional obligations [23]. This will encourage employees to work harder and complete their jobs more efficiently [5], [26]. Furthermore, the selection methods provide the company with access to environmentally conscious people who can contribute to the firm’s environmental management [23]. Organizational best practices in the green staffing process are recognized using paperless job postings, recruitment through social networking sites, no hardcopy resume submission, and paperless interviews.

Training and Development

Training and development refer to the activities involved in acquiring knowledge, and a thriving business prioritizes continuous learning throughout one’s life. This approach facilitates the enhancement of both individual and organizational capacities and the development of competencies that can adapt to environmental requirements [25], [2]. Yong [24] have identified training, development, and orientation programs as the most efficient means of providing employees with the requisite understanding of a company’s environmental policy, practices, and fundamental attitudes. The platform can provide intellectual resources that promote pro-environmental actions [18]. Organizations utilize these actions to enhance environmental consciousness and instil green habits in their personnel [26].

Performance Management

Incorporating environmentally friendly methods into employees’ performance evaluations is also crucial. Integrating green initiatives into employee performance criteria will establish the organization’s commitment to environmental sustainability as an integral element of each individual’s overall duties [25]; [2]. The assessment process evaluates employees’ environmental performance throughout their tenure in a company and offers them feedback to deter unfavourable attitudes or promote excellent conduct [23]. Organizations establish precise annual targets for employees and assess their achievement at the yearly appraisal session [26].

Compensation, Benefits, and Services

Compensation serves as an enticing employment brand that functions as a means to allure prospective employees. This green approach involves establishing a system that provides financial and non-financial incentives to employees who can make significant contributions to environmental management [23],[25],[2].

In order to assess whether organizations provide any form of compensation, whether monetary or non-monetary, for environmentally friendly actions taken by employees during their employment, the organization would promote the reward as part of the overall compensation package in job advertisements [26].

Labour Relation

GHRM encompasses various practices such as green recruitment, green selection, green training and development, green motivation-enhancing practices, performance appraisal and rewards, and green employee involvement practices. These practices empower employees to contribute to environmental management and propose solutions for environmental issues [3]. In order to tackle the increasing environmental issues, managers should establish strict regulations by imposing penalties or fines on employees who do not comply with the business’s environmental policy. This will help cultivate a culture of discipline inside the organization [18]. Moreover, green practices possess inherent worth: a sense of tranquillity and emotional equilibrium. Organizations have introduced a green workplace or green zone to reduce stress, which positively affects employees’ mental well-being and emotional resilience [26].

GHRM and Organizational Types

Prior research has shown that numerous firms have demonstrated their environmental consciousness through implementing GHRM. These organizations encompass a wide range of sectors, including both large and small manufacturing companies specializing in metal, electronic, and semiconductor production, service organizations, hotels, and public universities. Their commitment to environmental protection is evident via their implementation of quality management initiatives, including attaining ISO 14001 accreditation for their manufacturing operations. This certification is linked to environmental impact management, which encompasses pollution prevention, waste reduction, consideration of environmental sensitivities, formalization of human resources procedures, and compliance with government requirements. The success of these green initiatives can be attributed to the strong commitment of top management to corporate social responsibility and the thoroughness of job analysis and description. Stakeholders also applied pressure on firms concerning green intellectual capital, which encompasses green human capital, structural capital, relational capital, and environmental culture. These factors collectively contributed to the success of GHRM [8], [10], [21], [7], [9].

Effects of Green HRM

GHRM has several ramifications, particularly on individual job performance, the cultivation of positive workplace attitudes, employee environmentally-friendly conduct, and corporate citizenship behaviour[2],[5], [7]. According to reports, GHRM has a significant influence on the long-term viability and durability of organizations. Incorporating economic, environmental, and social performance has a good effect on the natural environment and society and results in long-term economic advantages and a competitive edge for the business [23]. GHRM directly impacts environmental performance by decreasing energy consumption, water usage, waste generation, and emissions. This has been supported by studies conducted by [26], [8]. Islam [10] and Shafaei [21] asserts that GHRM is vital in enhancing employee retention, leading to increased commitment and job satisfaction.

MATERIALS AND METHODS

The study employed a quantitative, positivism philosophy, cross-sectional survey by using descriptive statistical analysis. The self-administered survey via Google Forms was distributed to the 74 HR personnel using a simple random sampling procedure. This number is considerably adequate by using Roscoe’s model which proposed the sample size should be larger than 30 or less than 500 [31]. HR personnel were selected as target participants to effectively shape others’ behaviour through their involvement in developing green policies, practices, and organizational values. The utility company is selected as the studied organization because it manages public service infrastructure and necessitates research and development to supply services to users effectively. Environmental protection is a major concern, yet only a few studies have assessed the significance of green resource management (GRHM) in Malaysian organizational contexts. The questionnaires adopted from past studies consist of 18 items, and divided into five dimensions including green recruitment and selection, green training and development, green performance management, green pay and rewards, and green involvement [4]. Respondents were granted ample time to respond without any pressure, enabling them to respond sincerely.

Furthermore, the questionnaire design enables respondents to complete all items in both Malay and English. We categorized the questionnaires into demographic profile and GRHM. The respondents were required to indicate their level of agreement on a five-point Likert scale, ranging from (1) strongly disagree to (5) strongly agree, and the data was analyzed through descriptive analysis.

RESULT

A total of 74 individuals took part in the study. The survey has been actively engaged by non-executive staff members (73%), participants aged 41 to 50 (35%), female respondents (65%), and married participants (84%). Table 1 displays the overall average value recorded at the higher level (m = 4.14). A low standard deviation indicates that the responses are close to the mean value. The results indicate that the items utilized for the final analysis demonstrated exceptional reliability values (α =.962) which is more than (α =.60) [29]. The normality test analysis, which includes checking for skewness within the range of ±2 and kurtosis within the range of ±7, also confirms that the data follows a normal distribution. To assess the perceived level of GHRM among HR staff, both management and non-managerial, the five-point Likert scale has been simplified into three categories: high, medium, and low (Table 2).

Table 1: perceived green human resource management (ghrm) practices

Table 2: mean scale categories

According to the output in Table 1, all respondents agreed that they observed high GHRM practices in their organization, with the mean value reported between 3.62 and 4.38.To interpret the mean value result, the five-Likert scale was converted into three mean categories: high, medium, and low (Table 2), to have an actual representation of the perceived level reported by the respondents. Overall, the respondents viewed GHRM as highly observed, with a mean score of 4.14. The three items with the highest mean values reported were; the organization’s green claim, which enhances its attractiveness to candidates who prioritize environmental protection in their job search (m = 4.38); the organization’s use of green employer branding to attract environmentally conscious employees (m = 4.35); and the presence of several formal or informal communication channels within the organization to promote a green culture (m = 4.35). The items that received the least attention were: the organization offers recognition-based rewards for environmental management to its staff, such as public recognition, awards, paid vacations, time off, gifts, and certificates (m = 3.82); it provides green benefits, such as transportation and travel, instead of providing pre-paid cards for purchasing green products (m = 3.77); and there are dis-benefits in the performance management system for non-compliance or failure to meet environmental management goals (m = 3.62).The findings are consistent with previous research, indicating that GHRM practices are a priority for environmental sustainability and green management [2].

DISCUSSION

The study effectively assessed the perceived extent of GHRM procedures at a utility firm in Malaysia. The firm has exhibited a robust dedication and financial allocation towards environmentally friendly practices, seamlessly incorporating these activities into their overarching obligations, notably meeting their societal responsibilities. This has helped the business achieve efficiency, control costs, and promote environmentally friendly behaviours in delivering essential services. It has also encouraged collaboration across different parts of the organization to adopt green practices. Organizational strategy planning may also integrate environmentally friendly strategies to guarantee long-term viability.

The discovery suggests that the organization’s assertions about being environmentally friendly, such as efforts to minimize pollution and manage a sustainable supply chain, significantly impact its financial success. This has also had significant ramifications for job searchers seeking firms with environmentally sustainable practices that align with their objectives. While job applicants formerly focused primarily on salary competitiveness, they now emphasize green practices as their ultimate professional ambitions, indicating their strong commitment to conserving and safeguarding the environment. This can help the organization obtain skilled personnel with congruent organizational values [14], [15].

Furthermore, the practice of promoting environmentally friendly company branding substantially impacts the employment choices made by job seekers. The concept of employment branding, which involves incorporating environmental stewardship into employees’ job responsibilities, extends the scope of corporate social responsibility to encompass environmental considerations. Additionally, it effectively conveys an organization’s commitment to sustainability goals. This approach has significantly impacted job seekers’ level of interest in potential employment opportunities [14].

The study emphasizes the significance of utilizing official or informal communication channels to foster an environmentally conscious culture inside an organization. Efficient communication is crucial for change management, particularly about environmentally friendly practices. It can shape people’s knowledge, subsequently affecting their individual choices and level of interest in green practices. Communication can span from traditional to contemporary channels. Previously, knowledge was exchanged through direct personal encounters, phone conversations, and emails. However, nowadays, people use online communication and social media platforms to connect with a larger and more varied audience and receive quick responses. The selection of a communication channel can also be influenced by user-friendliness, dependability, convenience, and the capability to record communications. These elements are interconnected and should be considered [17], [22].

Nevertheless, corporate organizations may also regard salary, awards, bonuses, and services as significant endeavours. Work teams may experience stress when trying to fulfil deadlines and make significant organizational changes, as these efforts demand employee commitment to green practices. Hence, the organization must emphasize offering a wide range of benefits that mitigate these sources of stress and serve as a form of support within the firm. The provision of a diverse array of monetary and non-monetary rewards significantly impacts a firm’s operational effectiveness, namely in terms of employee retention, engagement, dedication, drive, and efficiency [13].

Researchers employ quantitative research methods to corroborate measurement scales utilized in previous studies, but this approach exposes them to potential common method biases. Integrating qualitative research with quantitative research allows researchers to pose inquiries that are not based on numerical data to gain a deeper understanding of human experience and social phenomena. This study employed perceptual research, which used self-report measures to collect data suitably. This approach was efficient and expeditious in assessing beliefs, attitudes, and behaviours related to environmentally friendly actions, enhancing the acquisition of additional data from research participants. Furthermore, this research can potentially subject participants to bias if they possess little exposure and narrow interests in the domain topic of investigation, compromising the dependability of their responses. In order to mitigate perceptual bias, it is beneficial to employ data triangulation and involve numerous observers. This approach allows for a broader and more comprehensive understanding of the topic [19], [16].

CONCLUSIONS & RECOMMENDATION

In conclusion, GHRM practices in organizational strategies enhance sustainability and attractiveness to employees. This study underscores the benefits of incorporating environmentally friendly initiatives, fostering employee engagement, and improving organizational efficiency through effective communication and comprehensive reward systems. Moving forward, organizations should prioritize embedding environmental goals in strategic planning, enhancing communication channels to promote green initiatives effectively, and expanding reward systems beyond financial incentives. Employing mixed-methods research and strategies to mitigate perceptual bias will ensure a holistic approach to advancing GHRM practices and achieving sustainable business outcomes.

ACKNOWLEDGEMENTS

The Research and Industry Linkages Unit, Faculty of Administrative Science and Policy Studies, awarded the Internal Grant (Project Code: 600-ICAEN/FIRG-02/2023), which allowed the authors to conduct this research. They also thank all research participants and referees for their insights and feedback, which made this publication successful.

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