INNOVATION & COMPETITIVENESS IN HRM THROUGH GREEN HR PRACTICES BY Ms

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INNOVATION & COMPETITIVENESS IN HRM THROUGH GREEN HR PRACTICES BY Ms. Neeshu Sharma, Assistant Prof. Shree Ji Govardhan Maharaj College of Professional Studies Mathura [email protected] mob: 9917147289, 9528228161 Mrs. Sandhya Singh, Assistant Prof. Shree Ji Govardhan Maharaj College of Professional Studies Mathura [email protected] mob:9368950716 Abstract. Green management initiatives become an important factor in forward-thinking businesses around the world. Researchers argued that employees must be inspired, empowered and environmentally aware of greening in order to carry out green management initiatives. Corporate green management requires a high of technical and management skills in employees, since the company will develop innovation-focused environmental initiatives and programmes that have significant managerial implications. However, gaps still exist in the human resource management (HRM) literature on human resource (HR) aspects of environmental management - Green HRM. This includes an informative guide on the emergent literature, its scope and coverage, a process model and research agenda. There is a growing need for strategic green HRM – the integration of environmental management into HRM. The main purpose of this study is to explore constructs of green HRM. This paper proposes a development of a new model of strategic green HRM by reviewing the literature on HR aspects of environmental management, synthesizing the thinking arising from the review of these literatures, and proposes research model. From the perspectives of strategic HRM and green management, this study argues that

Transcript of INNOVATION & COMPETITIVENESS IN HRM THROUGH GREEN HR PRACTICES BY Ms

INNOVATION & COMPETITIVENESS IN HRM THROUGH GREEN HR PRACTICES

BY

Ms. Neeshu Sharma, Assistant Prof. Shree Ji Govardhan Maharaj Collegeof Professional Studies Mathura

[email protected]: 9917147289, 9528228161

Mrs. Sandhya Singh, Assistant Prof. Shree Ji Govardhan Maharaj Collegeof Professional Studies Mathura

[email protected]:9368950716

Abstract. Green management initiatives become an important

factor in forward-thinking businesses around the world.

Researchers argued that employees must be inspired, empowered

and environmentally aware of greening in order to carry out

green management initiatives. Corporate green management

requires a high of technical and management skills in employees,

since the company will develop innovation-focused environmental

initiatives and programmes that have significant managerial

implications. However, gaps still exist in the human resource

management (HRM) literature on human resource (HR) aspects of

environmental management - Green HRM. This includes an

informative guide on the emergent literature, its scope and

coverage, a process model and research agenda. There is a

growing need for strategic green HRM – the integration of

environmental management into HRM. The main purpose of this

study is to explore constructs of green HRM. This paper proposes

a development of a new model of strategic green HRM by reviewing

the literature on HR aspects of environmental management,

synthesizing the thinking arising from the review of these

literatures, and proposes research model. From the perspectives

of strategic HRM and green management, this study argues that

the new model should include among others the relationship of

assessment-based HR Interventions, environmental management

system (EMS), green intellectual capital(GIC) and corporate

environmental citizenship (CEC).

Keywords: green HRM, green management, intellectual capital,

corporate environmental citizenship

1. Introduction

What is Green HR?

With society becoming more environmentally conscious, businesses

are starting to incorporate green initiatives into their

everyday work environment. Human Resource teams are among the

groups beginning to incorporate these concepts within their

respective HR functions. What exactly are Green HR initiatives

and how do they apply to business performed today and in the

future?

The question "What is Green HR" was presented to a panel of

business professionals with the results pointing towards

environmentally friendly initiatives that reduce an employee's

carbon footprint. The results included: electronic filing, ride

sharing, job sharing, teleconferencing and virtual interviews,

recycling, telecommuting, online training, and developing more

energy efficient office spaces. Not only are we reading about

how to become more "green" but we are seeing these concepts

implemented more and more each year.

Green HR efforts to date have primarily focused on increasing

efficiency within processes, reducing and eliminating

environmental waste, and revamping HR products, tools, and

procedures resulting in greater efficiency and lower costs.

Actions taken thus far have been well intentioned and are

producing results, but little has been done to preserve talent

amidst the highest levels of unemployment we've seen since the

early 1980s. It's time to take these initiatives a step further

and expand our way of thinking green.

People, often referred to as "industry's most valued assets",

along with infinite levels of knowledge, experience, and know-

how gained at the expense of their employer, appear expendable

in today's economy. Can the investment made in human capital be

considered waste, if what we see happening is indeed a waste of

talent and development dollars? How can and will Green HR impact

how companies utilize their human capital?

Green HR is about retaining, recalling, preserving, and growing

talent, therefore reducing and/or eliminating workplace

inefficiency. Along with creating a more efficient workplace,

retaining knowledge capital forces employers to properly

evaluate their staff and look for the best options available. 

What do these concepts mean for the economy of 2009 and beyond?

With unemployment rates hitting 9.4% in May not only are people

struggling to find employment, but companies are finding their

top talent absent during the most crucial times of production.

Some examples of Green HR implementation include, but not

limited to, reduced work schedules, furloughs, and phased

retirement programs. In the current economy this means saving

your top talent while still meeting cost cutting needs. When the

economy begins to recover Green HR initiatives continue to

preserve knowledge capital while giving employees more options

and a better work-life balance.

By continuing to be environmentally friendly while recognizing

the importance of human capital, not only will our environment

benefit but our jobs will remain globally and nationally

competitive.

Green HR  is one which involves two essential elements:

environmentally friendly HR practices and the preservation of

knowledge capital .Green HR involves reducing your carbon

footprint via less printing of paper, video conferencing and

interviews, etc. Companies are quick to layoff when times are

tough before realizing the future implications of losing that

knowledge capital. Green HR initiatives help companies find

alternative ways to cut cost without losing their top talent;

furloughs, part time work, etc.

Top “Green” Human Resource Practices Target Travel and Printing,

Buck Consultants Survey Finds

New York (PRWEB) February 17, 2009 -- More than half of

employers currently practice strategic environmental management,

a survey released today indicates.

“The Greening of HR Survey,” conducted by Buck Consultants, an

ACS company and one of the world’s leading human resource and

benefits consulting firms, finds that 54 percent of respondents

incorporate environmental management into their business

operations.

The survey analyzed responses from 93 organizations in the

United States, representing a wide range of industries. The

research was conducted during the fourth quarter of 2008, and

examines the types of “green” initiatives employers are using in

workforce management and human resources practices.

Whether they are part of a strategic business plan or a one-off

practice, some common green human resource initiatives include:

· Using Web or teleconferencing to reduce travel (78 percent),

· Promoting the reduction of paper use (76 percent), and 

· Implementing wellness programs to foster employees’ proper

nutrition, fitness, and healthy living (68 percent).

“Many employers now recognize that green programs in the

workplace can promote social responsibility among workers and

help retain top talent,” said Don Sanford, managing director of

Buck’s Communication practice who directed the survey. “More

than 60 percent of survey respondents have made environmental

responsibility part of their organization’s mission statement.”

The survey found employee involvement in green programs

dramatically increases when organizations appoint an individual

to lead the efforts. For companies with at least three-quarters

of their employees actively involved in green programs, 71

percent have appointed individual leaders whereas only 29

percent do not have such a leader.

Among companies that provide rewards to encourage green

behaviors, 77 percent provide special employee recognition, 36

percent give prize incentives, and 14 percent provide a monetary

reward.

“There is still much more that organizations can do,” said

Sanford. “We expect to see future growth in green training

programs, environmentally responsible investment options, and

recruiting employees with green skills.”

Buck Consultants, an ACS company, is a leader in human resource

and benefits consulting with more than 1,500 professionals

worldwide. Founded in 1916 to advise clients in establishing and

funding some of the nation’s first public and private retirement

programs, Buck is an innovator in the areas of retirement

benefits, health and wellness programs, human capital

management, and employee communication. News and other

information about Buck Consultants are available

at www.buckconsultants.com. Buck is an independent subsidiary of

Affiliated Computer Services, Inc.

ACS, a global FORTUNE 500 company with approximately 70,000

people supporting client operations reaching more than 100

countries, provides business process outsourcing and information

technology solutions to world-class commercial and government

clients. The company's Class A common stock trades on the New

York Stock Exchange under the symbol "ACS." Learn more about ACS

at http://www.acs-inc.com.

“The Greening of HR Survey” report is available to the media by

contacting Ed Gadowski at 201-902-2825. It is available to other

interested parties at no cost from Buck’s Global Survey

Resources, 500 Plaza Drive, Secaucus, NJ, 07096-1533. Telephone

1-800-887-0509. It also can be ordered online

at www.bucksurveys.com.

Growing global environmental concerns and the development of

international environmental standard are creating the need for

businesses to adopt formal environmental strategies and

programmes. Traditionally, a majority of companies around the

world has used the compliance approach in their environmental or

green management initiatives driven by laws and regulations.

However, in the past several years, environmental forces such as

customer boycotts, dynamic preferences, and new customer

requirements have affected basic business strategies – from

pollution control to pollution prevention (Brockhoff et al.,

1999). In the environmental literature, the concept of green

management for sustainable development has various definitions;

all of which generally, seek to explain the need for balance

between industrial growth for wealth creation and safeguarding

the natural environment so that the future generations may

thrive (Daily and Huang, 2001). Nevertheless, the issue of how

an individual organization or entire society achieves

sustainability from the green management movement is still

debatable and unclear. Thus, research on how business may

structure their facilities to enhance for sustainability through

green management initiatives seems paramount.

Implementation of corporate green management initiatives

requires a high level of technical and management skills among

employees due to the facts that the company will develop

innovation-focused environmental initiatives and programmes that

have a significant impact on the sustainable competitive of the

firms (Callenbach et. al., 1993). In this respect, the

implementation of rigorous recruitment and selection of

employees, performance-based appraisal system, the introduction

of training programmes aimed at increasing the employees’

environmental awareness and courses addressed to the development

of new technical and management competencies have a basic

importance for fostering environmental innovations (Renwick et

al., 2008).

Researchers in this area argued that environmental management

system (EMS) can only be effectively implemented if the

companies have the right people with the right skills and

competencies (Daily and Huang, 2001). Strategic HRM researchers

argued that to achieve HR effectiveness, HR should be practiced

as a whole and must be aligned with the business strategic

goals, the primary means by which firms can influence and shape

the skills, attitudes, and behaviour of individuals to do their

work and thus achieve organizational goals (Collins and Clark,

2003). Previous literatures have paid attentions to the link of

HR practices and organizational outcomes such as productivity,

flexibility, and financial performance (e.g. Ichniowski et al.,

1997; Mendelson and Pillai, 1999; Collins and Clark, 2003), but

the understanding needs to be extended to encompass innovation

performance (Laursen and Foss, 2003) and environmental

management initiatives (Renwick et al., 2008). Accordingly,

strategic HR practices can be conducive to environmental

management initiatives because the practices may allow firms to

discover and utilize knowledge and expertise in the organization

(Scarbrough, 2003). However, knowledge within the human capital

and firms cannot easily be transferred among individuals inside

the firm. Although a firm has access to the knowledge, skills

and expertise of employees, it may need to possess good

capacities in managing knowledge and human capital tools must be

in place to ensure effective utilization of the human capital in

the development of organizational expertise for environmental

management. Knowledge management and intellectual capital

development are suitable approaches to adding or creating value

by more actively leveraging the knowhow and expertise resided in

individual minds (Scarbrough, 2003).

Thus this study argues that assessment based HR interventions

will contribute to the effective

implementation of EMS and the development of green Intellectual

capital (GIC) and in-turn contributes to the achievement of

corporate environmental citizenship (CEC).The general objective

of the paper is to propose, based on literature reviews, a

strategic model of green human resource management that

contributes to the implementation of EMS, green IC and corporate

environmental citizenship (CEC).

HUMAN RESOURCES AS A SOURCE OF COMPETITIVE ADVANTAGE

The concept of competitive advantage was formulated by Michael

Porter. Competitive advantage, Porter asserts, arises out of a

firm creating value for its customers. Porter emphasized the

importance of differentiation, which consists of offering a

product or service ‘that is perceived industry-wise as being

unique’, and focus – seeing a particular buyer group or product

market ‘more effectively or efficiently than competitors who

compete more broadly’. He then developed his well known

framework of three generic strategies, -cost leadership,

differentiation, focus- that organizations can use to gain

competitive advantage. Porter’s widely accepted view suggests

that the industry – environmental determinants- affects a firm’s

performance. Resource-based view, on the other hand, asserts

that the basis for a competitive advantage of a firm lies

primarily in the application of the bundle of valuable resources

at the firm's disposal. Competitive advantage, according to this

view differs from the environmentally focused strategic

management paradigm in that its emphasis is on the links between

the internal resources of the firm, its strategy and its

performance. The resource-based view suggests that human

resource systems can contribute to sustained competitive

advantage through facilitating the development of competencies

that are firm specific. The sustained superior performance of

many companies has been attributed to unique capabilities for

managing human resources to gain competitive advantage.

Conversely, to the extent that HR systems inhibit the

mobilization of new competencies and/or destroy existing

competencies, they may contribute to organizational

vulnerability and competitive disadvantage. In the closing years

of the twentieth century, management has come to accept that

people, not products, markets, cash, buildings, or equipment,

are the critical differentiators of a business enterprise. All

the assets of an organization, other than people, are inert.

They are passive resources that require human application to

generate value. The key to sustaining a profitable company or a

healthy economy is the productivity of the workforce.

2. Literature Review

2.1. STRATEGIC HRM (SHRM)

Green human resource management (GHRM) is an important topic for

research (Paawe and Boselie, 2003, 2005) and some basic

theoretical issues have been well accepted (Paawe and Boselie,

2005). SHRM has contributed to our understanding of the

relationship among strategy, human capital, HRM and

organizational performance (Paawe and Boselie, 2005). The

emergence of SHRM is influenced by the global competition, and

the corresponding search for sources of sustainable competitive

advantage (Dyer & Reeves, 1995). GHRM has achieved its

prominence because it provides a means by which business firms

can enhance the competitiveness and promote managerial

efficiency (Paawe and Boselie, 2005). SHRM facilitates the

development of a human capital that meets the requirements of

business competitive strategy, so that organizational goals and

mission will be achieved (Guest, 1987). SHRM researchers have

established a broader perspective that is oriented toward

managing the HR as a whole. Instead of focusing on individual HR

practices that are used independently or in isolation, SHRM

researchers look more broadly at bundles of HR practices or HR

systems that are implemented in combination (Paawe and Boselie,

2003; 2005). Delery and Shaw (2001) argued there is a general

agreement that “(1) human capital can be a source of competitive

advantage, (2) that HRM practices are the most direct influence

on the human capital of a firm, and (3) that the complex nature

of a coherent HRM system of practices can enhance the

inimitability of the system” (p 166).

2.2. Green Management Initiatives

In the past, sound economic performance of the firm was expected

to guarantee corporate success by companies and its

shareholders, but now it is no longer valid; economic and

financial outcomes need to be accompanied by minimization of

ecological footprints and increased attention to social and

environmental 80 aspects. Therefore, the new strategic issue,

corporate environmentalism or green management emerged in 1990s

and became a popular slogan internationally in 2000s (Lee,

2009). Green management is defined as the process whereby

companies manage the environment by developing environmental

management strategies (Lee, 2009) in which companies need to

balance between industrial growth and safeguarding the natural

environment so that future generation may thrive (Daily and

Huang, 2001). This concept becomes a strategic dominant issue

for businesses, especially multinational enterprises operating

their business globally (Banerjee, 2001). In summary, green

management refers to the management of corporate interaction

with, and impact upon, the environment (Lee and Ball, 2003), and

it has gone beyond regulatory compliance and needs to include

conceptual tools such as pollution prevention, product

stewardship and corporate social responsibility (Hart, 2005;

Pullman et al., 2009; Siegel, 2009). Business firms play a key

role in the issues of environmental management since they are

part of our society and cannot be isolated from the environment,

and in fact, they contribute most of the carbon footprints in

the past (Liu, 2010). Application of innovative technology could

alleviate the environmental deterioration by developing, for

example, the biotech products and by searching for alternative

energy to reduce the use of finite natural resources. Thus,

business should put more effort into the research on innovative

technology to minimize the impacts of environmental destruction

by creating products that are nontoxic and less pollution to

environment (Liu, 2010; Ozen and Kusku, 2008).

2.3. Green HRM - HR Factors affecting Green Management

Initiatives

Many researchers, especially in the area of HRM, argued that the

effectiveness and successful in any management innovation and

strategic tools are defending on the availability and ability of

their human resources employed in the strategic manners (Boselie

et al., 2001; Paauwe and Boselie, 2003). HRM system is defined

as “a set of distinct but interrelated activities, functions,

and process that are directed at attracting, developing, and

maintaining (or disposing of) a firm’s human resources” (Lado

and Wilson, 1994). Organization generally organizes HR practices

into systems that are consistent with their culture and business

strategy (Boselie et al., 2001). Many researchers agreed that

HRM is the most effective tools which contribute to the creation

of human capital, and in turn, contributes to organizational

performance and competitive advantage (Boselie et al., 2001;

Paauwe and Boselie, 2003). Currently, many corporations are

implementing a proactive, strategic tool known as an EMS to gain

competitive advantage (Daily and Huang, 2001). This system

provides a structure that allows management of the firms the

ability to better control the firm’s environmental impacts

(Barnes, 1996; Florida and Davison, 2001). An EMS includes

commitment and policy, planning, implementation, measurement and

evaluation, review and improvement (Hersey, 1998). Callenbach et

al. (1993) argued that in order to carry out green management,

employee must be inspired, empowered and environmentally aware

of greening to be successful. On the other hand, to effectively

implement green management initiatives and fostering

environmental innovations, corporations require a high level of

technical and management skills (Callenbach et. al., 1993;

Renwick et al., 2008). Hence, this paper argues that to

effectively implement green management initiatives through the

implementation of EMS requires strategic implementation of HR

systems that fit with organization’s culture and long-term

goals.

2.4. Green Intellectual Capital

Many studies in the past found that intellectual capital (IC)

has positive influence on competitive advantage of firms (Chen,

2008). IC is the total stocks of all intangible assets,

knowledge, and capabilities of a firm that could create values

or competitive advantages, and achieves its excellent goals.

However, no research has explored whether IC in environmental

management has a positive effect on competitive advantage of

firms (Chen, 2008). Hence, this paper proposes to fill this

research gap, and support a novel construct of green

intellectual capital - the positive relationship between IC in

green innovation or environmental management and competitive

advantages of firms. This paper referred to the classification

of IC adopted by Bontis (1999) and Chen (2008) which classified

green IC into green human capital, green structural capital and

green relational capital. This paper proposes to further

explore, whether the three types of green IC have positive

effects on corporate environment citizenship as on important

factors of competitive advantages of firms.

2.5. Corporate Environment Citizenship (CEC)

Corporate environmental behaviour has been researched as an

attempt to explain the heterogeneity of organizational response

to the environment-related institutional pressures (Sharma,

2000). Studies concerning this specific issue have generally

recognized that companies are subject to strong institutional

pressure in the form of normative societal expectations,

coercive regulations, tight public policies, media and non-

governmental organizations scrutiny (Ozen and Kusku, 2008).

Environmental strategies of organizations within developing

countries vary from opportunistic compliance to voluntaries

(Ozen and Kusku, 2008). Hence, the concept of CEC has been

defined as “all of the precautions and policies corporations

need to implement in order to reduce the hazards that they give

to the environment” (Kusku, 2007, p. 75). This study will

explore the construct of CEC based on the concept proposed by

Ozen and Kusku (2008) which consists of regulative, normative

and cognitive as consequences of implementation of EMS and

development of green IC assessment based HR interventions.

Based on the literature reviews, this study proposed the

following research model;

5. CONCLUSION

GREEN HR is a HR Consulting provide a wide variety of human

resource services focusing on the two most important aspects of

business: People and Processes. Human resource management

practices are thought to improve staff morale and to form an

essential element in successful business performance.Our

Consultancy involves the provision of information, advice or

support to an organization with a need. We provide in-house

custom HR services for companies who want to outsource their

functions. We provide human resource services including HR

outsourcing, performance management, organizational development

and procedure development etc.

Our consulting services can be provided on-site or off-site or

a combination that best suits our client's needs. Our main

concept is dedicated to helping employers manage every aspect

of creating there best team. We do that by helping you

streamline and maximize the front line and bottom line benefits

of quality human resource management.

With our strategic process consulting, we support your work in

your personnel department. We help the human resources

department become a valuable instrument of business management.

We create concepts for human resources topics to attain

business goals and assist in practical implementation. We also

provide additional services such as following:

CV / Candidate Verification

Payroll Processing

HR Support Facilities like Yoga and Personal Counseling

Employee Exit Interview

Since it is clearly understood from academic research that human

resources are a source of sustained competitive advantage,

while, traditionally, the costs associated with the development

of HR strategy have been regarded as an operating expense, these

costs would be better considered as an investment in capital

assets. The way an organization manages its HR has a significant

relationship with the organization’s results, a revelation that

supports the

resource-based view, where business competitiveness is related,

at least in part, to the investments in company specific assets.

Although the published research generally reports positive

statistical relationships between the greater adoption of Green

HR practices and business performance, it should also be kept in

mind that many other factors besides Green HR practices could

influence organizational performance. Also, it is possible that

there are complex relationships between Green HR practices and

other resources of the firm. The causal linkage between Green HR

and organizational performance will enable the HR managers to

design programmes that will bring forth better operational

results to attain higher organizational performance. The focus

of the green HR management should be to understand

organizational performance processes and design Green HR

practices that influence process and outcome variables.

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