INNOVATION & COMPETITIVENESS IN HRM THROUGH GREEN HR PRACTICES BY Ms
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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.
3. References
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