Letter of Transmittal

Date

Dr. Mohammad Rabiul Bashar Rubel

Associate Professor
Chairman- Department of Management
Faculty of Business Studies
Bangladesh University of Professionals (BUP)

Subject: Submission of Report on Green HRM Practices and Green Service Behavior in
the Banking Industry in Bangladesh.

Dear Sir,

This is our pleasure to present my report entitled Green HRM Practices and Green Service
Behavior in the Banking Industry in Bangladesh. I have tried my level best to portray an analysis
on the given case study. This helped me to learn more about Green HRM Practices and Service
Behavior of the employees in the Banking Industry in Bangladesh. I like to express my gratitude
to you for all your support and guidance during the preparation of this report.

Please accept this report and oblige. I am eager to respond to any questions that you may have
concerning the report.

Sincerely yours,
Name
ID:
Batch:
Bangladesh University of Professionals

i
 Acknowledgements

First and foremost, all praise and deep thanks are due to Allah (the creator), who helped and
guided me through the challenges of my study. Glory is to Allah who has given me the strength,
patience and knowledge to continue and finish my thesis.

This thesis would never have seen the sun without the full support of my Parents who, after
Allah, were my greatest supporters. They provided me with love, guidance, prayer and endless
support and wisdom. These are things I will never be able to repay.

From the depths of my heart, I would like to express my gratitude to my supervisor, Dr. Rabiul
Bashar Rubel, Chairman, Department of Marketing, for his guidance, intellectual advice and
patience throughout the research process. I owe him heartfelt thanks for his time and effort that
assisted me throughout my study. My humble acknowledgments and gratitude go also to all
Faculty members of Bangladesh University of Professionals for guidance and support during
four years of my study.

Finally, many thanks to all those academics and individuals who have helped me in many ways
with my research.

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 Abstract

As an emerging concept, green human resource management (green HRM from now on) is
defined as ‘HRM activities, which enhance positive environmental outcomes’ (Kramar, 2014,
p. 1075), and has been conceptualized to elucidate how it might influence employees to exhibit
green workplace behaviors. However, few studies have empirically pursued the concept to
determine what effects green HRM wields on Performance consequences. Therefore, this thesis
addresses this literature gap, by empirically investigating how and why green HRM impacts or
influences employee service behavior.

To what extent do green human resource management (GHRM), practices influence the
tendency to green behavior of banking employees in Bangladesh? That is the prime question
addressed in a study of 280-line managers in private commercial banks in Bangladesh.

This study is designed to empirically test a model of GHRM practices, and green behavior in
the work place. The current study employed six dimensional green HRM practices- job
position, recruitment, selection training and development, performance appraisal and reward,
with green behavior practices of employees.
This study proposed 6 hypotheses and the results of structural equation modeling (SEM) found
5 hypotheses supported.

The study can help management have a better understanding of the importance of green HRM
in introducing and implementing green behavior in the organization. Furthermore, from the
analysis and the literature support it can be elucidated that management of the organization and
policy makers need to give more concentration on ensuring the green HRM practices in the
organization.

This study notably contributes to the green HRM literature in several ways. Firstly, the
development, subsequent testing and validation of green HRM measures were developed
through a literature review and empirical validation. This measure development now provides
a useful platform for future green HRM studies, which enables researchers to develop more
generalized cross-cultural measures. Secondly, to date, only a handful of studies have
empirically explored green HRM and its effects on employee workplace behaviors. Of those
studies, the research was limited to either exploring general human resource management
iii
(HRM) on employee green behaviors (Paillé, Chen, Boiral & Jin, 2014), or used samples that
were too small to add any real value to the green HRM debate (Harvey, Willliams & Probert,
2013). As such, there is currently a distinct lack of adequate theory-based green HRM empirical
research. This study fills this void and expands the HRM literature in regards to understanding
the consequences of green HRM on employee workplace outcomes. Specifically, a greater
understanding of the social and psychological processes that influence employee workplace
behaviors and attitudes has been answered within this study.

Key words: Green HRM, Green Service Behavior, Banking organization, Bangladesh.

iv
 Table of Contents

Acknowledgement i
Abstract ii
List of Figures vi
List of Tables vi

CHAPTER 1 INTRODUCTION
1.1 Background of the study 1
1.2 Problem Statement 2
1.3 Research question 2
1.4 Research objectives 3
1.5 Significant of the study 3
1.6 Key Terms 4

CHAPTER 2 INDUSTRY OVERVIEW

2.1 Introduction 5
2.2 Banking Sector of Bangladesh 5
2.3 Historical Background 6
2.4 List of Banks in Bangladesh 9
2.5 Islamic Banking 11
2.6 Potential Green Banking Initiative 12
2.6.1 Through Business Initiative 13
2.6.2 Through Government Initiatives 15
2.6.3 Through Social Changing Initiatives 17
2.7 Summary 19

CHAPTER 3 LITERATURE REVIEW

3.1 Introduction 20
3.2 Green Service Behavior 20
3.3 Factors affecting Green Service Behavior 21
3.4 Green Human Resource Management 23
3.5 Green Human Resource Practices 23
3.6 Framework of Research 30
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3.7 Hypothesis/Proposition 31
3.8 Summary 33

CHAPTER 4 METHODOLOGY
4.1 Introduction 34
4.2 Research Design 34
4.3 Population, Sample and Size 35
4.4 Data collection process 35
4.5 Data analysis 36
4.6 Summary 36

CHAPTER 5 ANALYSIS AND FINDINGS

5.1 Introduction 37
5.2 Findings 37
5.3 Summary 40

CHAPTER 6 DISCUSSION AND CONCLUSION 41

References vii
Appendix x

vi
List of Figures

Figure 1 Research Framework 30

Figure 2 Standard Beta Value xi

List of Tables

Table 1 Comparative position of the Islamic Banking Sector 12

Table 2 Result of the measurement model 38
Table 3 Result of discriminant validity 39
Table 4 Result of partial squares path analysis 40

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 CHAPTER 1 INTRODUCTION

This chapter introduces the subject of this research project. Firstly, it presents the aims of the
study, along with illustrating the background and justification for conducting the research. This
is followed by a brief discussion of the research questions, hypotheses and the conceptual
framework. The chapter will then outline the major research findings and structure of the thesis
and conclude with a brief review of the contents of the chapter.

1.1 Background of the study

Various stakeholder groups have closely scrutinized the environmental consequences of

business activities over the past few decades (Waddock, Bodwell & Graves, 2002). As a result,
business organizations are under increasing pressure to put environmental and green policies
in place, in order to gain institutional legitimacy and cultivate positive external reputations
(Jabbour & Santos, 2008). Development of corporate reputations and effective engagement in
social activities, which are important aspects of corporate social responsibility (CSR), has
become an important source of organizational competitive advantage strategies (Porter &
Kramer, 2011). Human resource management plays an important role in the successful
facilitation of these organizational strategies (Lis, 2012), as well as positively influencing
employee workplace behaviors and attitudes (Huselid, Jackson & Schuler, 1997). Current
green HRM literature, albeit primarily conceptual, suggests that organizations should adopt
effective green HRM policies, processes and practices to promote and elicit employee green
behaviors in order to achieve organizational green goals (Ones & Dilchert, 2012a, 2012b;
Renwick, Redman & Maguire, 2013), much like HRM has been found to positively influence
organizational CSR outcomes (Lis, 2012).

Green HRM might include such processes and human resource (HR) practices such as taking
into account a candidate’s green values during the recruitment and selection process, green
awareness and environmental skills and capabilities training, employee green behavior
considered during promotions and performance appraisals and compensating employees for
the achievement of green related targets (Cohen, Taylor & Muller-Camen, 2010; Jackson &
Seo, 2010; Renwick et al., 2013). The HRM behavioral literature suggests that HRM, or
potentially green HRM, might not directly influence employee workplace behaviors, but rather

1
this is likely to occur through the virtue of individual social and psychological processes (Jiang,
Lepak, Hu & Baer, 2012).

Therefore, this study sets out to explore the veracity of current HRM, green HRM and green
management literature with the primary aims of this research to:

 examine existing literature pertaining to foundational concepts from which green HRM
evolved. Those concepts include HRM, environmental management (EM) and CSR,
which will illuminate our understanding behind the emergence of green HRM
 discuss and explore how green HRM is currently defined
 identify and discuss green HRM practices in detail to determine their appropriateness
and/or effectiveness for applying to contemporary workplaces.

1.2 Problem Statement

The prime intention of this research is to find out green human resources practices that
stimulate the intention in employees for acting in favor of environment and how significantly
these can cause sustainability in business. This research is based on the employees of banking
industry in Bangladesh. As in Bangladesh green service behavior are introducing in different
multinational companies. This research aims to evaluate how it’s going to create impact on the
employees of financial sector as 30% of total professional workforce of Bangladesh belongs to
financial sector.

1.3 Research question

 To what extent do green human resource management (GHRM), practices influence the
tendency to green behavior of banking employees in Bangladesh?
 Which green human resources practices influence over green service behavior of the
employees?

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1.4 Research objectives
The study has general and specific objectives:

1.4.1 General Objective

The general objective of the study was to determine the influence of Green Human
Resource Management practices on the green behavior of banking employees in
Bangladesh

1.4.2 Specific Objectives

 To explore the effect of green HRM practices for enhancing the employee green
behavior in the organization.
 To test a model of GHRM practices, and green behavior in the work place
 Which GHRM practices can have effect on green service behavior

1.5 Significant of the study

The study focused on the influence of GHRM practices on the environmental sustainability in
banking sector of Bangladesh. The study can help management have a better understanding of
the importance of green HRM in introducing and implementing green behavior in the
organization. Furthermore, from the analysis and the literature support it can be elucidated that
management of the organization and policy makers need to give more concentration on
ensuring the green HRM practices in the organization. This study notably contributes to the
green HRM literature in several ways. Firstly, the development, subsequent testing and
validation of green HRM measures were developed through a literature review and empirical
validation. Secondly, to date, only a handful of studies have empirically explored green HRM
and its effects on employee workplace behavior. Of those studies, the research was limited to
either exploring general human resource management (HRM) on employee green behavior.

3
1.6 Key Terms

 Green Human Resource Management (Green HRM)

Green Human Resources Management (GHRM) refers to using Human Resources
Management (HRM) practices to reinforce environmentally sustainable practices and
increase employee's commitment on the issues of environmental sustainability. It embraces
considering concerns and values of Environmental Management (EM) in applying Human
Resources (HR) initiatives generating greater efficiencies and better Environmental
Performance (EP) necessary for reducing employees' carbon footprints. Today, GHRM has
become a key business strategy for the significant organizations where Human Resource
Departments play an active part in going green at the office.

 Green Service Behavior

Green behavior is a type of behavior that minimizes harm to the environment as much as
possible, or even benefits it (Steg & Vlek, 2009). This is a personal initiative that exceeds
organizational expectations” (Norton et al., 2015). Activities such as prioritizing
environmental interests, initiating environmental programs and policies, lobbying and
activism, and encouraging others can be identified as voluntary Green Service Behavior
practices adapted in the work setting.

 Banking organization
A bank is a financial institution licensed to receive deposits and make loans. A banking
organization may provide financial services, such as wealth management, currency
exchange and safe deposit boxes. The banking organization is a place that includes the
business of receiving money on current or deposit account, paying and collecting cheques
drawn by or paid in by customers, the making of advances to customers, and includes such
other business as the Authority may prescribe for the purposes of this Act

 Bangladesh
Bangladesh officially the People's Republic of Bangladesh, is a country in South Asia.
Bangladesh is the world's eighth most populous country. Dhaka is its capital and largest
city, followed by Chittagong, which has the country's largest port.

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 CHAPTER 2 INDUSTRY OVERVIEW

2.1 Introduction

Banking sector plays the prime role in investing for commercial or non- commercial projects
which is essential for economic growth. Generally, activities of banking sector are directly not
in a war with environment, but problem is with their customers’ activities. Customers are
physically attached with the impact of environment and banks are indirectly related. Therefore,
banking sector should come forward to promote and apply environmentally sustainable and
socially responsible investment. Banks are not directly attached in environment and it is very
complicated to estimate the stake. The banks should go green and play a positive role to protect
environment and ecological balance of our earth. So, promoting and maintaining “Green
Banking” should be one of the responsibilities and challenges of the banking sector.

Environmental responsible banking helps banks to get more competitive advantage and amplify
the market share (Chan, 2001; Fitzgerald, 1993; Porter and Van der Linde, 1995a), beside these
it is proved that it increases the customers’ loyalty. This practice to be green builds a different
strategy which helps the banks to earn more profit, progress employee motivation and as a
result enhance customer loyalty (Forte and Lamont, 1998). So, competitive advantages can’t
only be achieved by low cost strategy or differentiation, here integration of green banking can
promote a competitive strategy.

2.2 Banking Sector of Bangladesh

Banking sector of Bangladesh is one of the major sectors, which contributes significantly to
the national economy. The sector comprises a number of banks in various categories.
Considering ownership, the sector can be classified in to four major categories - such as
Nationalized Commercial Banks (NCBs), Specialized Banks (SPBs), Private Commercial
Banks (PCBs), and Trans-National Banks (TNBs) (Islam, 2001).

The commercial banking system put on vital role in Bangladesh's financial sector. Bangladesh
Bank is the Central Bank of Bangladesh and the principal regulator of the sector. Bangladesh
have total of 55 states owned, private, foreign and specialize Banks. The banking system

5
consists of four state-owned commercial banks, 31 private commercial banks, 10 specialized
development banks, and 10 foreign commercial banks.

2.3 Historical Background

The banking system at independence consisted of two branch offices of the former State Bank
of Pakistan and seventeen large commercial banks, two of which were controlled by
Bangladeshi interests and three by foreigners other than West Pakistanis. There were fourteen
smaller commercial banks. Virtually all banking services were concentrated in urban areas.
The newly independent government immediately designated the Dhaka branch of the State
Bank of Pakistan as the central bank and renamed it the Bangladesh Bank. The bank was
responsible for regulating currency, controlling credit and monetary policy, and administering
exchange control and the official foreign exchange reserves. The Bangladesh government
initially nationalized the entire domestic banking system and proceeded to reorganize and
rename the various banks. Foreign-owned banks were permitted to continue doing business in
Bangladesh. The insurance business was also nationalized and became a source of potential
investment funds. Cooperative credit systems and postal savings offices handled service to
small individual and rural accounts. The new banking system succeeded in establishing
reasonably efficient procedures for managing credit and foreign exchange. The primary
function of the credit system throughout the 1970s was to finance trade and the public sector,
which together absorbed 75 percent of total advances. The government’s encouragement
during the late 1970s and early 1980s of agricultural development and private industry brought
changes in lending strategies. Managed by the Bangladesh Krishi Bank, a specialized
agricultural banking institution, lending to farmers and fishermen dramatically expanded. The
number of rural bank branches doubled between 1977 and 1985, to more than 3,330.
Denationalization and private industrial growth led the Bangladesh Bank and the World Bank
to focus their lending on the emerging private manufacturing sector. Scheduled bank advances
to private agriculture, as a percentage of sect oral GDP, rose from 2 percent in FY 1979 to 11
percent in FY 1987, while advances to private manufacturing rose from 13 percent to 53
percent.

The transformation of finance priorities has brought with its problems in administration. No
sound project-appraisal system was in place to identify viable borrowers and projects. Lending
institutions did not have adequate autonomy to choose borrowers and projects and were often

6
instructed by the political authorities. In addition, the incentive system for the banks stressed
disbursements rather than recoveries, and the accounting and debt collection systems were
inadequate to deal with the problems of loan recovery. It became more common for borrowers
to default on loans than to repay them; the lending system was simply disbursing grant
assistance to private individuals who qualified for loans more for political than for economic
reasons. The rate of recovery on agricultural loans was only 27 percent in FY 1986, and the
rate on industrial loans was even worse. As a result of this poor showing, major donors applied
pressure to induce the government and banks to take firmer action to strengthen internal bank
management and credit discipline. As a consequence, recovery rates began to improve in 1987.
The National Commission on Money, Credit, and Banking recommended broad structural
changes in Bangladesh’s system of financial intermediation early in 1987, many of which were
built into a three-year compensatory financing facility signed by Bangladesh with the IMF in
February 1987.

One major exception to the management problems of Bangladeshi banks was the Grameen
Bank, begun as a government project in 1976 and established in 1983 as an independent bank.
In the late 1980s, the bank continued to provide financial resources to the poor on reasonable
terms and to generate productive self-employment without external assistance. Its customers
were landless persons who took small loans for all types of economic activities, including
housing. About 70 percent of the borrowers were women, who were otherwise not much
represented in institutional finance. Collective rural enterprises also could borrow from the
Grameen Bank for investments in tube wells, rice and oil mills, and power looms and for
leasing land for joint cultivation. The average loan by the Grameen Bank in the mid-1980s was
around Tk2,000 (US$65), and the maximum was just Tk18,000 (for construction of a tin-roof
house). Repayment terms were 4 percent for rural housing and 8.5 percent for normal lending
operations.

The Grameen Bank extended collateral-free loans to 200,000 landless people in its first 10
years. Most of its customers had never dealt with formal lending institutions before. The most
remarkable accomplishment was the phenomenal recovery rate; amid the prevailing pattern of
bad debts throughout the Bangladeshi banking system, only 4 percent of Grameen Bank loans
were overdue. The bank had from the outset applied a specialized system of intensive credit
supervision that set it apart from others. Its success, though still on a rather small scale,
provided hope that it could continue to grow and that it could be replicated or adapted to other

7
development related priorities. The Grameen Bank was expanding rapidly, planning to have
500 branches throughout the country by the late 1980s.

Beginning in late 1985, the government pursued a tight monetary policy aimed at limiting the
growth of domestic private credit and government borrowing from the banking system. The
policy was largely successful in reducing the growth of the money supply and total domestic
credit. Net credit to the government actually declined in FY 1986. The problem of credit
recovery remained a threat to monetary stability, responsible for serious resource misallocation
and harsh inequities. Although the government had begun effective measures to improve
financial discipline, the draconian contraction of credit availability contained the risk of
inadvertently discouraging new economic activity.

The commercial banking system dominates Bangladesh’s financial sector. Bangladesh Bank is
the Central Bank of Bangladesh and the chief regulatory authority in the sector. The banking
system is composed of four state-owned commercial banks, five specialized development
banks, thirty private commercial Banks and nine foreign commercial banks. The Nobel-prize
winning Grameen Bank is a specialized micro-finance institution, which revolutionized the
concept of micro-credit and contributed greatly towards poverty reduction and the
empowerment of women in Bangladesh.

Banking industry in Bangladesh started its journey with 6 nationalized commercialized banks,
2state owned specialized banks and 3 foreign Banks. In the 1980s banking industry achieved
significant expansion with the entrance of private banks. Now, banking sector in Bangladesh
is primarily of two types:

A) Schedule Bank

B) Non-schedule Bank

A). Scheduled Bank: The banks which get license to operate under Bank Company Act, 1991
(Amended in 2003) are termed as Scheduled Bank. State-owned commercial banks, private
commercial banks, Islamic commercial banks, foreign commercial banks and some specialized
banks are Scheduled Bank.

B). Non-Scheduled Bank: The banks which are established for special and definite objective
and operate under the acts that are enacted for meeting up those objectives are termed as Non-

8
Scheduled Bank. These banks cannot perform all functions as like as scheduled banks.
Grameen Bank, Probashi Kallyan Bank, Karmasangsthan Bank, Progoti Co-operative Land
Development Bank Limited (progoti Bank) and Answer VDP Unnayan Bank are Non-
Scheduled Bank.

2.4. List of Banks in Bangladesh:
There are 5 types of Banks in Bangladesh.

These are:

A) Central Bank 


B) State- owned Commercial Banks 


C) Private Commercial Banks

D) Foreign Commercial Banks 


E) Specialized Development Banks 


A) Central Bank:
 Bangladesh Bank

B) State-owned Commercial Banks:

 Sonali Bank Limited
 Rupali Bank Limited
 Agroni Bank Limited
 Janota Bank Limited

C) Private Commercial Banks:

 United commercial Bank Limited
 Mutual Trust Bank Limited
 BRAC Bank Limited
 Eastern Bank Limited
 5 Dutch Bangla Bank Limited
 Dhaka Bank limited
 Islami Bank Bangladesh Limited

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 Uttara Bank Limited
 Pubali Bank Limited
 IFIC Bank Limited
 National Bank Limited
 The City Bank Limited
 NCC Bank Limited
 Prime Bank Limited
 Southeast Bank Limited
 l-Arafah Islami Bank Limited
 Social Islami Bank Limited
 Standard Bank Limited
 One Bank Limite
 Exim Bank Limited
 Bangladesh Commerce Bank Limited
 First Security Islami Bank Limited
 The Premier Bank Limited
 Bank Asia Limited
 Trust Bank Limited
 Shahjalal Islami Bank Limited
 Jamuna Bank Limited

 ICB Islami Bank 


 AB Bank 


 Marcantile Bank Limited 


D) Foreign Commercial Banks:

 Citibank
 HSBC
 Standard Chartered Bank
 Commercial Bank of Ceylon 5 State Bank of India
 Habib Bank Limited
 National Bank of Pakistan
 Woori Bank
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  Bank Alfalah
 ICICI Bank

E) Specialized Development Banks:

 Bangladeshi Krishi Bank
 Rajshahi Krishi Unnayan Bank
 Progoti Co-operative Land Mortgage Bank Limited
 Grameen Bank
 The Dhaka Mercantile Co-operative Bank Limited (DMCBL)
 Bangladesh Development Bank Limited
 Bangladesh Somobay Bank Limited (Cooperative Bank)
 Ansar VDP Unnyan Bank

 Basic Bank Limited

 Karmasangstan Bank

2.5 Islamic Banking


Alongside the conventional interest-bearing banking system, Bangladesh entered into an

Islamic banking system (profit-loss sharing) in 1983. At present, out of 48 banks in Bangladesh,
6 private commercial banks are operating as full-fledged Islamic banks and 10 conventional
banks are artially involved in Islamic banking in a total of 21 branches. The Islamic banking
industry continued to show strong growth since its inception in 1983 to June 2007 in tandem
with the growth in the economy, as reflected by the increased market share of the Islamic
banking industry in terms of assets, financing and deposits of the total banking system. The
entire picture is given at Table 1. Total deposits of the Islamic banks and Islamic banking
branches of the conventional banks stood at Taka 286.5 billion at end June 2007. This was 23.6
percent of the deposits of all private commercial banks and 14.3 percent of the deposits of the
total banking system at the end of June 2007. Total investment of the Islamic banks and the
Islamic banking branches of the conventional banks stood at Taka 265.4 billion at end June
2007. This was 26.9 percent of all private banks and 17.2 percent of the total banking system
of the country (Bangladesh Economic Review, 2010).

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Table 1: Comparative position of the Islamic Banking Sector

Islamic
Private
Particulars Islamic banks Banking
Commercial All Banks
Branches
Banks

Number of Banks 10 30
5 48

Number of Branches 330 21 1854 6596

Number of
390 38426 99287
Employees 12109

263.1
Deposits 23.4
1214.6 2005.8

Investments
(Credits) 249.6 15.8 987.7 1541.9

Source: Research Department of Bangladesh Bank, 2013.

2.6 Potential Green Banking Initiative:

On the above circumstances, green-banking practices by some worldwide banks and Indian
banks might suggest good lessons for the banking sector of Bangladesh. Broadly, the paper
aims at a review of green banking initiatives and how can take green banking initiatives for
Bangladesh Banking Sector. It is sure that total imitation of these practices may not give fruitful
output because they have to consider different aspects e.g. different climates, economic
statuses, clients groups, business practices, reputation of banks, and structure of financial
sectors. So, we have to find a combination of some aspects.

To establish environmental responsible banking or green banking there should be a

combination of three elements. Green banking initiatives can be taken through business
initiatives, government initiatives and social changing initiatives. As a responsible financial
organization of the country banking sector of Bangladesh alongside with govt. and social side
have to adopt some important initiatives in implementing green banking of Bangladesh.

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2.6.1 Through Business Initiatives:

 Formulation of wide sustainable policies

A bank should prepare and implement wide sustainable or environmental policies. Board
of directors and stakeholders will approve those strategies. Effective sustainable policy
development at all levels is the key to success to achieve goals of “Green Banking”. To
achieve these goals and to meet the emerging challenges of environment, there should be a
sustainable policy which will make easy to establish green banking. So, Board of directors
and stake holders should approve those strategies which are more effective for green
banking.

 Isolation of green banking unit

The establishment of a separate Green Banking policy implementation unit is very

important to assign responsibility for designing, evaluating and administering Green
Banking issues of the bank. The responsibility of heading the unit will be done by a senior
executive and a permanent position will play the role of coordinator of the unit. The high-
powered committee will get report from this unit time to time.

 Employee awareness and training

Educating the employees can be very effective initiative for green banking. Awareness
development among employees and giving appropriate training would be an important task
of a bank under its public relation department. If employees become aware and get trained
then they can also contribute in green banking and that will easy for bank to perform in
environmental responsible banking.

 Paperless Banking

Going online banking is a simple way to implement the green banking. The financial
services industry has been successful in removing paper-oriented processes. Paperless
banking has helped the banks to do efficient operations, curtailing the costs, better
performance and management. Paperless banking will save time, money, tree and natural

13
resources. It includes; online account opening, maintenance, bill payment, remote deposit,
online fund transfers, online statements to prevent paper from entering any banking
process, inauguration of credit transaction through BEFTN through which banks can reduce
the paper based cheques/pay orders for payments between customers and banks, use of EFT
debit card and automatic feeding scanner to avoid photocopying.

Customers have abundance opportunities to take some benefits such as reduce time waste,
more secure transactions, less transportation cost and so on. Customers can also save money
by avoiding many of those late payment fees or overdraft fees that can be avoided if the
customers use online banking services. If the customers are still thinking for online
banking, then quickly find a green bank with an online banking platform and make a
contribution in green banking and save the earth.

Still there are many customers they don’t practice online banking, specifically after going
online further they use paper. Paperless banking requires transformation of existing
processes and implementing new technologies which will save paper. Still there are some
problems in establishing paperless banking.

So, we can use an example or initiatives to identify the actions which can help to do
paperless banking. Various steps have been taken by the “Standard Chartered Bank,
Bangladesh” to minimize the bank’s direct operational impact to the environment.

 E-Statements

Monthly or yearly account statements can be delivered via e-mail service to customers and
then it will stop the practice of using hard copies. By creating and engaging in paperless
statements and electronic billing, we can participate in making our planet habitable and
healthier by saving valuable papers. According to the Organization for Economic
Cooperation and Development (OECD), the pulp and paper industry individually consumes
a lot of water in their industries’ operations where they ranked as number one and they are
ranked as third biggest industrial greenhouse gas emitter. So, banks should send account
statements and balance information or any other documents to the customers through online
or e-mail services which will save paper, tree, time, cost and most importantly the
environment.

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  Initiating In-house Environment Management

In-house Environment Management should be taken by bank or others industries to

ascertain required measures to save the environment and reduce pollution while serving or
financing customers. The purpose and motives of practicing in-house environment
management is to make sure efficient and effective use of resources in all the branch and
head offices of banks.

Banks must take measures to confirm the efficient and effective use of water, paper,
electricity etc. through building green office. Bank can replace standard incandescent bulbs
with compact fluorescent lamps (CFLs) wherever possible. These consume 75 percent less
energy than standard incandescent light bulbs and give same luminosity as normal
incandescent light bulbs. Use of light wall colors, light paint colors and higher gloss sheens
reflect daylight etc. measures can be taken to reduce the cost of lighting. BC Hydro and
right positioned window is an excellent option for making the most and efficient use of
natural light which will save electricity and cost.

Turning off computer, lights, fans, ACs, taps when not in use, replace desktop with laptop
since laptops consumes less energy, online communication instead of depending on hard
copies, use of filter water instead of bottled water, recycling materials these are the great
example of efficient use of natural resources.

2.6.2 Through Government Initiatives

 Government policy and guidelines for green banking

Lots of policies have been introduced by the government to compel the banks for going
green. The government of Bangladesh determined five percent of total power will be
generated by using of renewable energy sources like solar energy, air and waste by 2015
and 10 percent by 2020 with the above policy and act. Around 60 percent people in
Bangladesh are deprived from the use of electricity while around 90 percent are not getting
natural gas system. Solar plant and biogas plant can provide a sustainable and environment

15
friendly solution to reduce the scarcity of the supply. So, government can use different acts
and policies which will help a lot to encourage the banking sector as well as consumers for
practicing green banking.

 International treaties

International treaty can be used as fruitful action by government of a country to develop

green banking. Many international organizations have established lots of valuable plans,
guidelines, strategies, standards and values to progress the green banking practices of
financial institutions or banks. Equator Principles, UN Principles for Responsible
Investment, UN Global Compact, and UNEP Finance Initiative Statements etc. are can be
exercised as international treaty. The UN Global Compact (UNGC) is made of ten
voluntary principles in which participant must give assurance to keep away from human
rights violations, stick on to labor standards, and protect the environment. The Equator
Principles (EP) refers that all participants banks must take social and environmental risks
as their own risks when investing in project finance. EP has the commitment that they will
not give any loans to projects where the borrower or clients is unable or unwilling to
maintain the social and environmental policies and rules of EP. Right now, EP has 68
biggest financial institutions in their policy.

 Carbon credit business

Carbon credit business is an instrument of national and international efforts to diminish the
increase of greenhouse gases. Basically, Carbon credits are international emission trading
which are done between surplus and deficit unit of GHG. Country can exchange, buy or
sell carbon credits in international markets at the existing market price. In 2006 global
carbon credit trading was estimated at $5 billion, where India's contribution was almost $1
billion. India is prominent for emitting less carbon. Any country that has deficit, they can
engage with India and China since they have excess credit to offer deficit country. So,
government of Bangladesh can engage in carbon credit business through bank which can
protect our environment.

 Pursuing strict Policy and Regulation

IF a country follows strict policies and regulations for environment, the industries would
have to follow certain standards to run their business ultimately which will convert them

16
 into green banking. Bangladesh has several acts to protect the environment such as the
Environmental Conservation Rules 1997, the Environment Court Act 2000, Forest Act of
1927, Bangladesh Wild Life (Preservation) Order of 1973, the Brick Burning Control Act
of 1989, and the National Environment Management Action Plan (NEMAP) in 1992 etc.
So, if these acts are applied strictly then all banks will have to go for green as a prerequisite.

 Via Central Bank (Bangladesh Bank)

Central Bank of country can facilitate the green banking initiatives through different
policies and regulations. Bangladesh Bank has inaugurated some positive initiatives to
prevent from environmental degradation through Bangladesh Government. The BB has
planned some green banking policy guidelines which will be applied in three phases from
2011 to 2013. In 1997, BB gave some pressure to the banking sector of Bangladesh to
implement required actions to protect the environment. BB declared that necessary steps
must be ensured to manage environmental pollution before invest in latest project or
providing working capital financing to the existing projects. BB states that industries that
are harmful to environment and made up with bank credit, will get consent to open LC for
importing machineries if the machineries contain waste treatment plant system.
Commercial banks have been encouraged by BB to go for online or paperless banking and
IT based banking. BB has issued guidelines for Corporate Social Responsibility (CSR) to
do environmentally and socially responsible banking practices. Results are very positive
which is increasing by year since banks are asked to do CSR works.

2.6.3 Through Social Changing Initiatives

 The Social Watchdogs

Several NGOs or social organizations can work together as guardian of green banking.
Watchman (2005) asked the NGOs and civil society to suggest banks ‘do no harm’ to the
environment. The study explains that as NGOs favoring a defensive approach to prevent
banks to invest in environmental unfriendly projects.

NGOs should also be cooperative to the banking sector in formulating guidelines and
correcting paths. Bank Tract (2010) recommends green lending policies must be included
in banks’ sector specific lending policies. The Guidelines for Investment in Operations,
which was published by WWF (World Wildlife Fund) in September 2003, facilitate banks

17
to discover important concerns in the sector and develop a forest policy. Green America
and its associates were successful to protest and prevent the plans for financing 11 new
coal-fired plants in Texas which was done by some USA large banks in 2007 and 8 plants
out of 11 was blocked with the help of Green America.

 Linkage with NGOs

Banking community yet has some problems in green banking promotions. They can create
connection with NGOs for promoting green banking. Habib (2010) identified only 40
percent banks are able to manage promotional activities to show their green practices; and
to support green program only 4 percent banks have made connection with NGOs. Banks
can also make linkage with NGOs for different eco-friendly initiatives using the same
platform.

Bangladesh perhaps has a better technical platform than any other country as same
population number in the world. There are lots of social organizations which can take some
initiatives to establish green banking. Many organizations are implementing different
projects, initiatives, arranging programs with government and international donor agencies
to protect environment. To prepare NEMAP (National Environmental Management Action
Plan in 2007) significant number of NGOs has work together.

 Altering consumer responses and perceptions

At the end of the day development of green banking will be largely determined by the
consumer behaviors and consumption patterns. All initiatives of banks, NGOS,
governments will be in vain if the consumer can’t change their mind and responses. They
have to support and use the green product, if they think green products are costly and we
will save money rather than earth then it is not possible to do green banking. For example,
a study by Javelin Research (2009) suggests that consumers have less interest in ‘acting’
green rather they have much interest in ‘Thinking’ green. Consumers have to give pressure
to the banks for doing green banking and change of mind setup.

18
2.7 Summary

In a swiftly shifting market economy, where globalization has strengthened the competition,
the business firms and industries are in danger to strict public policies, law suits or boycotts.
This would affect the banks and financial institutions to recover their return from investment.
Environmental protection and ecological balance should be ensured by the collective efforts of
different stakeholders. The concept of Green Banking was developed in the western countries
but now it is the key economic aspect for both developed and developing countries. Needless
to say, the long-term economic and environmental benefits of Green Banking Investment
(GIB), but the average type commitment or investment have been making it more difficult to
pay off the debts. It is a question about 'mother planet and its sustainability' shifting from a
traditional approach on ‘profit’, we have to invest a lot in green banking to pay off our debts to
our “Mother planet”. So, we should come forward to play positive roles in protecting our earth.

19
 CHAPTER 3 LITERATURE REVIEW

3.1 Introduction

This chapter evaluates the green human resources management literature to explore the
dimensions for analyzing the effect of them on employee service behavior. How green HRM
is currently defined will be determined. In addition, this chapter will discuss the key HRM
practices associated with green HRM. It also includes the research frame work as well as
hypothesis prepositions based on previous literature. The chapter concludes with a brief
summation of the key points on the emergence and creation of green HRM.

3.2 Green Service Behavior

Ones and Dilchert (2012) define employee green behavior (EGB) as “scalable actions and
behaviors that employees engage in that are linked with and contribute to or detract from
environmental sustainability”. According to Steg and Vlek (2009) EGB means individual
activity that minimizes harm to, or benefits the natural environment. EGB includes activities
such as saving energy, using resources efficiently, avoiding waste, recycling, and conserving
water (Norton et al., 2015; Ones & Dilchert, 2012). Employee green behaviors can be part of
any dimension of job performance and can be either required or discretionary, depending on
the nature of the job (Campbell and Wiernik, 2015). EGB in the workplace is normally more
observable and more constrained by organizational requirements and social norms. Therefore,
it is suggested that behaviors observed in organizational settings could differ remarkably
compared to when they are investigated in non-work settings (Wiernik, Dilchert and Ones,
2016). EGB has been conceptualized into two parts as voluntary behavior and required
employee behavior (Norton et al., 2015). According to Norton et al. (2015) required EGB is
delineated as green behavior performed within the context of employees’ required job duties.
Required EGB is also known as task related EGB which includes obliging to organizational
policies, changing methods of work and creating sustainable products and processes (Norton
et al., 2015). The concept of required EGB is similar to task performance (Norton et al., 2015)
which is defined as the activities formally identified as a part of the job of a person that
contributes to the technical core of an organization (Borman & Motowidlo, 1997). Voluntary
EGB has been defined as “green behavior involving personal initiative that exceeds
organizational expectations” (Norton et al., 2015). Activities such as prioritizing environmental
20
interests, initiating environmental programs and policies, lobbying and activism, and
encouraging others can be identified as voluntary EGB practices adapted in the work setting.
Similar to the concept of required EGB and task performance, the concept of voluntary EGB
make parallel association with contextual performance and organizational citizenship behavior
(OCB). OCB is defined as “the discretionary behavior of organizational members that is not an
enforceable requirement of the job description and performed willingly by the employees,
which ultimately contribute positively to overall organizational effectiveness” by Organ
(Botone, 2010; Podsakoff et al., 2000; Thiyagarajan & Kubendran, 2012). Therefore, it is
evident that OCB has supported to emergence of EGB literature (Boiral & Paillé, 2012; Norton
et al., 2015).

3.3 Factors affecting Green Service Behavior

 HRM Practices
A number of studies, such as Jabbour and Santos (2008) and Jabbour, Santos, and Nagano
(2008), along with papers published in the special issue of Human Resource Management
(Vol. 51, No. 6, 2012), have examined the contributions of HRM practices to organizational
environmental performance. Empirical studies, such as Harvey, Williams, and Probert
(2013) and Paillé, Chen, Boiral, and Jin (2014), have shown that HRM policies and
practices are related to individual- level employee pro-environmental behaviors. However,
Harvey et al. (2013) is a case study that utilized a small sample of airline pilots. The small
sample in this study did not allow the effect of HRM to undergo rigorous enough testing.
The Peillé et al. (2014) study, however, focused on general HRM, rather than green HRM.
The HR behavioral literature suggests that different HRM practices may influence the same
employee behavior through different social and psychological processes (Jiang, Lepak, Hu,
& Baer, 2012). As such, how and when green HRM influences employee workplace green
behavior remains largely unknown.

 Working Sustainably

In order to identify employee green behavior Ones and Dilchert (2012) had developed
Green Five Taxonomy which includes Working Sustainably, Avoiding Harm, Conserving,
Influencing Others, and Taking Initiative. This was a result of critical incident methodology
(McConnaughy, 2014). Working sustainably represents behaviors that help work processes

21
and products to be more sustainable and it includes four categories such as Choosing
Responsible Alternatives, Changing How Work is Done, Creating Sustainable Products
and Processes, and Embracing Innovation for Sustainability (Ones and Dilchert, 2012).

 Encouraging and Supporting Environment

As cited by McConnaughy (2014) influencing others describes how individuals can

influence each other to engage in environmental behaviors. According to Ones and Dilchert
(2012) it is the only category that is unambiguously social and influence can extend to other
stakeholders in the organization. Encouraging and supporting others are the two
subcategories of influencing others. The final category is taking initiative which is
considered as how individuals encourage and promote environmentally friendly behavior
by putting environmental interests first, initiating programs and policies, and lobbying
activism (Ones and Dilchert, 2012). The “green Five Taxonomy” created by Ones and
Dilchert (2012) has been considered as the nomenclature of EGB because it signifies the
breadth of possible EGBs (McConnaughy, 2014; Norton et al., 2015; Wiernik, Dilchert and

Ones, 2016).

 Green HRM
Drawing on the literature from three different perspectives, we developed and tested a
conceptual model depicting the social and psychological processes through which green
HRM influences individual green behavior. More specifically, from the behavioral HRM
perspective (Wright, Dunford, & Snell, 2001) we argued that green HRM would be
significantly related to employee green behavior. It is argued that organizational policies
and practices, such as HRM, shape employee psychological climate, that is, individuals’
perceptions of the work environment (Burke, Borucki, & Kaufman, 2002; Schneider,
Ehrhart, & Macey, 2013). Consistent with the psychological climate literature,
organizational green HRM practices would lead to psychological green climate
perceptions, which are in turn significantly related to individual workplace green behavior.
Moreover, we invoked the supplies-values fit theory (Edwards, 1996, 2007) to explore the
role of individual green values in moderating the relationships between green
HRM/psychological green climate and employee workplace green behavior. In doing so,
the current study provides insights into how and when green HRM promotes employee
workplace green behavior.

22
3.4 Green Human Resource Management

Green HRM incorporate environment-friendly HR commencement and practices for

sustainable use of resources that resulting in more efficiencies, Less wastage, Improved Job
Related Attitude, Improved Work/Private life, lower costs, Improved employee performance
and retention which help organization to reduce employee carbon footprints by the mean of
Green HRM practices i.e. Flexible work scheduled, electronic filing, car-sharing, job-sharing,
teleconferencing, virtual interviews, recycling, telecommuting, online training, energy efficient
office space etc. (Margaretha and Saragih, 2013). Marhatta and Adhikari (2013) and Zoogah,
(2011) refer its use of HRM policies and Practices for sustainable use of resources within
business organizations and generally promotes the cause of environmentalism. Opatha and
Arulrajah (2014) refers that Green HRM is the use of policies, practices, and systems in the
organization that make green employees for the benefit of the individual, team, society, natural
environment, and the organization. Different researchers describe Green HRM in different
ways, but somehow their intentions are same for sustainability of Human resources and their
environment.

Green human resource management (GHRM) consists of human resource management (HRM)
practices to improve employee workplace green performance (Renwick, Redman & Maguire,
2013). Considering candidate’s green value in recruitment and selection process, conducting
training on green awareness, during performance appraisals measuring employee’s green
behavior includes in green HRM practices (Cohen, Taylor, & Muller-Camen, 2010; Jackson &
Seo, 2010; Renwick et al., 2013). Which stated that Green HRMs’ link to its outcome Green
Service Behavior from green HRM practices- job position, recruitment, selection and training
and development, performance appraisal and reward.

3.5 Green Human Recourses Practices

GHRM is a manifesto which helps to create green workforce that can understand and appreciate
green culture in an organization. Such green initiative can maintain its green objectives all
through- out the HRM process of recruiting, hiring and training, compensating, developing,
and advancing the firm’s human capital (Dutta, 2012). The Human Resource Department of a
company is capable of playing a significant role in the creation of sustainability culture within
the company (Harmon et al., 2010). HR processes play an important role in translating Green
23
HR policy into practice (Renwick, 2008); therefore, human capital and its management are
instrumental to the fulfillment of EM objectives (Hersey, 1998). Huslid (1995) mentions the
selection processes, incentive compensation, performance management systems, the employee
involvement, and training to be central for the company’s success. Consequently, the argument
is advanced that the HR function is instrumental in realizing organizational change aimed at
acclimatizing to the new-found requirements for corporations and therefore also a potentially
important contributor to such a strategic issue.

It needs to be acknowledged that the intersection of sustainability, the natural environment, and
HR management are new areas in fast development and therefore, not characterized by a fully
developed body of writings (Jackson et al., 2011). Ulrich, Brockbank, and Johnson (2009) point
out that many HR systems need to be aligned with each other in order to increase the likelihood
that the organization will achieve its strategy. Cherian and Jacob (2012) in their study identified
that recruitment, training, employee motivation, and rewards are important human dimensions
which contribute to the improvement in employee implementation of green management
principles. In order to make sure that the organization gets right employee green inputs and
right employee green performance of job, it is indispensable that HRM functions are adapted
or modified to be green (Opatha & Arulrajah, 2014, p. 107). In this part of the paper, we briefly
describe a few specific functional HRM activities which identify with the sustainability and
the natural environment at the workplace and also provide opportunities for research in future.

 Green Job Position

Studies pertaining to in-role employee green workplace behaviors are scant, with only a
handful of studies that have explored employee green behavioral outcomes. A recent study
by Norton et al. (2014) empirically explored employee in-role or task-related green
behaviors with the study validating some of the linkages between organizational policies
and employee green behaviors. Emerging green related behavioral studies have focused on
general green, pro-social, proactive or pro-environmental behaviors without any clear
delineation from common or routine employee workplace behaviors (Bissing- Olsen et al.,
2013; Norton et al., 2014). Leung (2008, p. 45) offers a rational definition as ‘in-role
behavior encapsulates work behavior that is clearly expected, evaluated and rewarded and
that the behavior is clearly directed toward formalized tasks, duties and responsibilities
included in an employee’s job description’. Norton et al.’s (2014) study explored employee
perceptions of organizational factors, namely organizational green climate, and its effect
24
on employee green behaviors. Climate refers to how an employee perceives formal
organizational policies, how employees translate these policies into implied actions, and
how they see that these policies (and other employee behaviors and actions) are recognized,
rewarded and supported by the organization (Norton et al., 2014). The key findings were
that green workplace climate perceptions were associated with employee green behavior
when employees were conducting formal work-related tasks, whereas green workplace
climate perceptions of co-workers were associated with discretionary employee green
behaviors.

 Green recruitment
Attracting high-quality staff is a key HR challenge in the “war for talent” (Renwick et al.,
2013, p. 2). Holtom, Mitchell, Lee, and Eberly (2008) in their study on turnover and
retention of employees argue that the most important benefit dimensions of HR and
sustainability are retention/recruitment and satisfaction. Firms are now beginning to
recognize the fact that gaining reputation as a green employer is an effective way to attract
new talent (Phillips, 2007; Stringer, 2009). German firms such as Siemens, BASF, Bayer
and Mannesmann use environmental activities and a green image to attract high-quality
staff. The Rover Group carmaker, in Britain, makes environmental responsibilities and
qualifications part of every job profile (Wehrmeyer, 1996, p. 30). Increasingly, green job
descriptions with environmental aspects are now being included for employees within the
recruitment agenda. Green recruitment can be defined as the process of hiring individuals
with knowledge, skills, approaches, and behaviors that identify with environmental
management systems within an organization. According to Wehrmeyer (1996), recruitment
practices can support effective environmental management by making sure that new
entrants are familiar with an organization’s environmental culture and are capable of
maintaining its environmental values.

Green recruiting is a system where the focus is given on importance of the environment
and making it a major element within the organization. Complementing this, the recruits
are also enthusiastic, and to some extent, passionate about working for an environment
friendly “green” company. Recruiting candidates with green bend of mind make it easy for
firms to induct professionals who are aware with sustainable processes and are already
familiar with basics like recycling, conservation, and creating a more logical world.
Grolleau et al. (2012) in their study on impact of environmental standards of a company on
25
recruitment of an employee found that environmental commitment of the company adds to
profile of a company. In their primary survey, they found that professionals were more
concerned with respect to the environmental strategy of a company.

Contemplating these statements, we conclude that green recruitment provides the employer
with an opportunity to stand ahead of the crowd and further increase their chance of
attracting the candidates and retain them after induction. Corroborating the recent green
trend, we propose that the recruitment process be aligned with environment-friendly issues.
Further research should address questions related to the green employer’s enthusiasm in
achieving the environmental goals and how the potential job seekers perceive or rate them
on the parameters of sustainability as claimed. For example, do the employers include green
job descriptions, eco-friendly locations, paper less interviews, and such other practices in
their recruitment portfolio? Are the new recruits made aware with the environmental
policies and allegiance of the company at the commencement of the job itself? Research
addressing these questions will help the new recruits to carry on with the green policies as
well as cooperate with the management in establishing green policies to achieve the goals
of the company.

 Green Selection:
Induction programs may also act as extremely useful tool to inculcate environment-
friendly attitude among the new recruits. Through induction, a company can make an effort
to generate gravity and among the new employees about the corporate environmental
culture in a novel way (Wehrmeyer, 1996). A survey conducted by Chartered Institute of
Personnel and Development (CIPD) revealed that 49% of the respondents, who took part
in the survey, took environmental credentials into account while accepting a job offer from
a company (Brockett, 2006). At Paharpur Business Centre, which offers ready-to-move-in
serviced office solutions, the HR team has an ‘environmental responsibility' policy. The
policy plays a significant role in inducing staff to adopt green measures, thus, inculcating
long-term values of saving energy and resources of the corporate for the humanity's benefit
in whole (Times of India, Ascent, 29 June 2011).

26
 Green performance Appraisal
Green performance management consists of issues related to environmental concerns and
policies of the company. It also concentrates on use of environmental responsibilities.
Epstein and Roy (1997) in their study concluded that when HR managers integrate
environmental performance into PM systems, they safeguard environment management
against any damage. Today some firms deal with the issue of PM by installing corporate-
wide environmental performance standards, and Green information systems/audits to gain
useful data on environmental performance (Marcus & Fremeth, 2009).

The most important aspect of PM is performance appraisal. In addition to meeting the

criteria of reliability, validity, and fairness, effective performance appraisals provide useful
feedback to employees and support continuous improvements in the firm’s environmental
outcomes (Jackson et al., 2011, p. 7). Issues involved in environmental PA concern the
need for managers to be held accountable for EM performance in addition to wider
performance objectives (Renwick et al., 2013, p. 5). We suggest that future research on
green performance appraisal should focus upon issues such as environmental incidents,
environmental responsibilities, communication of environmental policy, and green
information system and audits. The job description should be aligned with green tasks and
goals to be achieved. The HR staff should modify the performance appraisal rating system
to include dimensions for rating people on the following behavioral and technical
competencies: teamwork, collaboration, diversity, innovation, and environmental
stewardship. Such competencies would reinforce the company’s core values (Liebowitz,
2010, p. 53). Managers should discuss the performance of the employees and give the
needed feedback not only during the scheduled time of appraisal, but also all-round the
year. This practice will help the employees to enhance their knowledge, skills and ability.

 Green training and development

Training and development are a practice that focuses on development of employees’ skills,
knowledge, and attitudes, prevent deterioration of EM-related knowledge, skills, and
attitudes (Zoogah, 2011, p. 17). Green training and development educate employees about
the value of EM, train them in working methods that conserve energy, reduce waste, diffuse
environmental awareness within the organization, and provide opportunity to engage
employees in environmental problem-solving (Zoogah, 2011). Green T&D activities make

27
employees aware of different aspects and value of environment management. It helps them
to embrace different methods of conservation including waste management within an
organization. Further, it sharpens the skill of an employee to deal with different
environmental issues. Ramus (2002) in a survey of managers, on best management
practices concluded that environmental training and education, along with establishing a
favorable environ- mental culture for the employees where they feel that they are the part
of environmental outcomes, were the most important HRM processes that facilitate the
achievement of environmental goals. Liebowitz (2010), in his study on the role of HR in
achieving a sustainability culture, suggests that the HR Department can offer leadership
development workshops to help managers develop their “front wheel” soft, people skills,
or behavioral competencies, in teamwork, diversity, managing change, and collaboration
(p. 3). Future research that facilitate green training on one hand and helps organizations on
the other to develop eco-friendly managers who without any hesitation can indulge as well
as promote sustainability throughout the process would be particularly useful.

Concluding the above discussion, we envisage that the need of the hour is: organizations
should train their employees on best business practices enthused with green initiatives.
Besides, sustainable training and education employees should also be adept to educate the
customers regarding the advantages of becoming more earth-friendly and buying green
products.

 Green compensation
Rewards and compensation are the major HRM processes through which employees are
rewarded for their performance. These HR practices are the most powerful method which
links together an individual’s interest to that of the organizations. We also assert that
incentives and rewards can influence employees’ attention to the maximum at work and
motivate them to exert maximum effort on their part to achieve organizational goals.

In the context of Green HRM, rewards and compensation can be assumed as potential tools
for supporting environmental activities in organizations. In accordance to a strategic
approach for reward and management, modern organizations are developing reward
systems to encourage eco- friendly initiatives embarked upon by their employees. The
statement is supported by a survey con- ducted in the UK by CIPD/KPMG that estimated
that 8% of UK firms were rewarding green behaviors with various types of awards and/or
28
financial incentives (Phillips, 2007, p. 9), and these practices can be effective in motivating
employees to generate eco-initiatives (Ramus, 2002). In a similar study by Forman and
Jorgensen (2001) on the importance of employee participation in environmental pro-
grams, it was observed that employee commitment to environment management programs
was increased when they were offered compensation to take up duties in relation to
environmental responsibility. The efficacy of green rewards and compensation was best
observed in a study con- ducted by Berrone and Gomez-Mejia (2009) on 469 US firms
operating in high-polluting industries. They found that the firms having eco-friendly
performance paid their CEOs more than non- eco-friendly firms. They also concluded that
long-term company results in accordance to pay were associated with greater pollution
prevention success. Literature review reveals that incentives encourage executives to use
accounting and other works to achieve short-term results and enrich themselves (Benz &
Frey, 2007; Denis, Hanouna, & Sarin, 2006).

Though compensation and rewards increase green initiatives in organizations, it can never
be completely free from some malpractices. Developing effective monetary incentives can
be challenging due to the difficulty of accurately and fairly evaluating environmental
behaviors and performance (Fernández, Junquera, & Ordiz, 2003). Hence, we agree with
Gupta (2008) that companies need to design energy-efficient products and processes, and
devise incentives to accelerate their acceptance (p. 4). It is suggested that if green rewards
and compensation system are aligned to the process of HRM, then a green culture in
organizations can be encouraged. By incorporating elements of green management in the
compensation program, managers can promote the green behaviors among the employees.
Further, managers can ask employees to bring specific green ideas pertaining to their
individual jobs which can be through mutual decisions included into the objectives to attain
in for the upcoming year. Attaining these objectives would be the basis of receiving
incentives.

Employee compensation programs can be modified to give bonuses based in part on the
employee’s appraisal ratings on the behavioral and technical competencies. In addition,
employees could be awarded bonuses for their outstanding work on special projects
(Liebowitz, 2010, p. 53). Green rewards can include the use of workplace and lifestyle
benefits, ranging from carbon credit offsets to free bicycles, to engage people in the green
agenda while continuing to recognize their contribution (Pillai & Sivathanu, 2014, p. 1).
29
 Last, but not the least, more emphasis should be given on researches which determine
effective approaches that will help to design and implement green compensation practices
and may lead to the achievement of corporate environmental goals.

3.6 Framework of Research

This study concentrated on the perception of green HRM practices (job position, recruitment,
selection, reward, performance appraisal and training and development) to determine how well
and to what level it influence on employee service behavior. As Exhibit 1 shows, the different
dimensions of green HRM practices that influence green service behavior. We test our
hypothetical model using data from a self-reporting survey of 393-line managers from banking
industry that operate in Bangladesh.

Job
Position

Recruitment

Selection
Green
Service
Behavior
Reward

Performance
Appraisal

Training and
Development

Figure 1: Research Framework

30
3.7 Hypothesis/Proposition

Green Service Behavior consists of green organizational citizenship behaviors. For any
organizations, sustainability is one of the most concerned issues, so the context of Green HRM
considered in the light of sustainability all over with the help Green Service Behavior. Green
human resource management (GHRM) consists of human resource management (HRM)
practices to improve employee workplace green performance (Renwick, Redman & Maguire,
2013). Considering candidate’s green value in recruitment and selection process, conducting
training on green awareness, during performance appraisals measuring employee’s green
behavior includes in green HRM practices (Cohen, Taylor, & Muller-Camen, 2010; Jackson &
Seo, 2010; Renwick et al., 2013). Which stated that Green HRMs’ link to its outcome Green
Service Behavior from green HRM practices- job position, recruitment, selection and training
and development, performance appraisal and reward.

Job Position

A job title describes employee’s position. Depending on the job, it describes the level and
responsibilities of the person on the position. Job positions that enable workers to engage in
environmental management issues, stimulate workers to be knowledgeable about
environmental management and demand environmental knowledge of workers, should be
focused. Research’s also find the influence of greening in India, (Mishra, Sarkar, and Kiranmai,
2014) is largely influenced by job position. Thus, from the literature support it can be
hypothesized as follows;

Hypothesis 1: Job Position is positively related with Green Service Behavior.

Recruitment

Few studies include case study and employer interview evidence about hiring. A British Carbon
Trust confirms that over 75% employees considering working for an organization with active
environmental policy (Clarke, 2006). Being a green employer is a useful way to attract potential
employees with environmental orientation (CIPD, 2007). Green psychological climate is
positively related to Corporate environment which impact the link between green behavioral
intentions and green behavior. Specifically, the relationship to be positive only when
31
employees perceive a positive green psychological climate (Norton, Zacher, Parker, Ashkanasy
2017)

Hypothesis 2: Recruitment is positively related with Green Service Behavior.

Selection

In the selection context, some companies consider environmental concern and interest of
candidates as selection criteria. Environmental-related questions are asked by those companies
during evaluating candidates (Revill, 2000). Some researcher find that organizations should
select applicants who are sufficiently aware of Greening to fill job vacancies and to select
applicants who have been engaging in Greening as consumers under their private life domain
(Opatha 2013). As green selection ultimately results in green employee’s behavior so these two
are positively related.

Hypothesis 3: Selection is positively related with Green Service Behavior.

Training and Development

Conducting seminars and workshops for environmental awareness at management level is

important to achieve good environmental performance. Providing Environmental education
that can change attitude and behavior among managers and non-managerial employees (North,
1997) is also needed to the organizations. A training program to impart right knowledge and
skills about Greening (the four Green roles) to each employee and training needs analyses to
identify Green training needs of employees is also suggested (Opatha 2013). From these
findings we can say that green training and development results in to Green Service Behavior.

Hypothesis 4: Training and Development is positively related with Green Service Behavior.

Performance Appraisal

Evaluation of green performance of employee can be a part of the performance evaluation

system of the organization. Environmental management information systems (Wells et al,
1993) and environmental audits (Carpenter, 1994) are adopted by many organizations. (Opatha,
32
2013) suggested that companies can evaluate job performance according to Green-related
criteria’s and can include a separate component for progress on Greening in the performance
feedback interview. Managers should assess number of green incidents, use of environment
responsibility, and successful communication of environmental policy within their departments
for further evaluation (Renwick et al, 2008; Renwick et al, 2013).

Hypothesis 5: Performance Appraisal is positively related with Green Service Behavior.

Reward
Green reward practices of the organizations have direct influence on the sustainability of
organization’s environmental performance. Some companies have successfully rewarded
extraordinary environmental performance, practices and ideas including environmental criteria
into salary reviews (Crosbie and Knight 1995). Like managers with participation in in green
activities was awarded at Coors (Woods, 1993). Incentives for green reward management like
recycling and waste management, supporting flexible schedules and telecommuting, reducing
long-distance business travel (Jackson et al, 2011). As reward directly influence over the
performance so green reward is positively related to Green Service Behavior.

Hypothesis 6: Reward is positively related with Green Service Behavior.

3.8 Summary

The common theme in this literature review is that HRM factors influence the retention of
employees. It considers the relationships between a broad range of recognized variables and
employee green service behavior. And based on previous literature building new hypothesis.

33
 CHAPTER 4 METHODOLOGY

4.1 Introduction

This chapter will explain the methodology that was used throughout this research. The chapter
will begin with an outline of the research design, a mixed method approach, and discuss the
characteristics of both forms of the qualitative and quantitative methods of research. It will also
discuss the ethical considerations of the study along with the sample used and review the
processes regarding the collection of the data. The chapter will then illustrate how the green
HRM measures were developed and depict the measures used for all variables in both the
employee and supervisor questionnaires. Finally, the chapter will identify the methods used for
analyzing the data, the benefits for using those methods and the key procedures involved in the
analytical process. The chapter concludes with a synopsis of the primary points in relation to
the methods and processes utilized throughout the study.

4.2 Research Design

The key aim as a researcher is to seek to explore and expound current events, as well as seeking
to explain future events (Babbie, 2012). Normal human observations are subjective and often
interpreted erroneously, whereas, as researchers, our intentions are to avoid these types of
errors and make observations through cautious and deliberate acts within the realms of
qualitative and quantitative methods of research. Methods and methodology, according to
Bryman (2008, 2012) are two distinct constructs, with methods referring to the instruments of
data collection, such as questionnaires or interviews, or specific tools for analyzing data, or it
may refer to sampling, a specific statistical technique. Methodology is the study of the
particular methods that have been implemented within research, and aims at uncovering the
results of premises and practices adopted within an empirical study (Bryman, 2008).

The purpose of the research was to investigate which factors influence employee green service
behavior among banking industry. Where Cross sectional study was used. Cross-sectional
study design is a type of observational study design. In a cross-sectional study, the investigator
measures the outcome and the exposures in the study participants at the same time. Unlike in
case–control studies (participants selected based on the outcome status) or cohort studies
(participants selected based on the exposure status), the participants in a cross-sectional study

34
are just selected based on the inclusion and exclusion criteria set for the study. Once the
participants have been selected for the study, the investigator follows the study to assess the
exposure and the outcomes. Cross-sectional designs are used for population-based surveys and
to assess the prevalence of diseases in clinic-based samples. These studies can usually be
conducted relatively faster and are inexpensive.

4.3 Population, Sample and Size

The current study is cross-sectional type of study in which data were collected at one point of
time (Sekaran & Bougie, 2010) and conclusions were drawn through examination at a specific
point of time. This study targeted line managers of banking organization of Bangladesh located
in Dhaka. Dhaka was chosen because all the bank’s branches and head offices are available
here. For this study, data were collected in two months period from July 2017 to August, 2017.
Initially, the researchers contacted all these banking organization to conduct the survey, while
25 banks agreed to participate. Based on the responses, questionnaires were distributed
personally through the help of the HR managers of the respective banking organizations.

4.4 Data collection process

A total of 450 questionnaires were distributed purposefully where 325 were received within
this two-month duration. Among these 325 questionnaires, 45 were removed due to insufficient
information. Therefore, in total, 280 questionnaires were found usable for data analysis with a
response rate of 62.20%. In the context of Bangladesh, Rubel and Kee (2014) have found only
29% response rate in their study.

In Partial Least Square (PLS), 100 sample size is sufficient for analysis (Hair et al., 2010). The
present study employed judgmental sampling technique. Judgmental sampling is a part of the
purposive sampling of nonprobability sampling design (Sekaran & Bougie, 2010). This sample
technique was used to collect data from a specific group purposively selected for the present
study. In this study, SPSS statistical analysis package (version 21) and partial least squares
(PLS) with Smart PLS M 2.0 were used for data assessment and hypothesis testing. From the
findings of the analysis, most of the respondents fall below the range of 31 to 35 years old
(61.9%) More than three quarter of the respondents was found male (79%) and more than half

35
of the respondents were found married (57%) and remaining 43% was unmarried. In terms of
educational experience near about half have of the respondents (48.6%) have a master degree.

4.5 Data analysis

A total of twenty-three (15) items for six dimensions (job position, recruitment, selection,
performance appraisal, training and development and rewards) of green HRM of this study
were adapted from recognized scales or existing measures. This level is considered a high level
of reliability because it is higher than the acceptable value of 0.7. Lastly, six (6) items from
Kim, Han ackson and Ployhart, (2014) were used to assess green service behhavior.
Respondents were asked to indicate their agreement on a scale ranging from 1 (“strongly
disagree”) to 5 (“strongly agree”) for all variables.

Due to the self-reported character of the data, there was a chance of occurring common method
variance (CMV). The Harman single-factor test was undertaken to determine the magnitude of
this. Podsakoff and Organ (1986) stated that common method bias is awkward if a single latent
factor explains the maximum of the explained variance. The un-rotated factor analysis of the
current study demonstrated that the first factor covered for only 21.56% of the variance where
67.33% variances covered by 8 factors total, and therefore the CMV was not a risk in this study.

4.6 Summary

This chapter highlighted the key research design that was used in the study, namely the mixed
method approach. This resulted in a greater understanding of the policies, processes and
practices of the Company, as well as helping in the development and formulation of green
HRM measures. Using a questionnaire process, the research data was collected from a number
of primarily frontline employees and their immediate supervisor. the data subsequently
analyzed using PLS-approach. The next chapter will present the findings for both phases.

36
 CHAPTER 5 ANALYSIS AND FINDINGS

5.1 Introduction

This chapter reports the results of the research study commencing with a breakdown and
interpretation of the key elements of the qualitative study, as well as answering the first sub-
question. The chapter begins by presenting an analysis of extensive interviews conducted
during data collection, green management and green HRM related policy development and
implementation. The chapter will then detail the results of the quantitative data that was
collected via a questionnaire process which answers the remaining four questions and
hypotheses. The chapter concludes with a summation of the research.

5.2 Findings

The partial least squares path modeling method to structural equation modeling allows
estimating complex cause-effect relationship models with latent variables. It is a component-
based estimation approach that differs from the covariance-based structural equation modeling
(Hair, J.F.; Hult, G.T.M.; Ringle, C.M.; Sarstedt, M. 2014). Unlike covariance-based
approaches to structural equation modeling, PLS-PM does not fit a common factor model to
the data, it rather fits a composite model (Henseler, Jörg; Dijkstra, Theo K.; Sarstedt, Marko;
Ringle, Christian M). In doing so, it maximizes the amount of variance explained (though what
this means from a statistical point of view is unclear and PLS users do not agree on how this
goal might be achieved). In addition, by an adjustment PLS is capable to consistently estimate
common factor models as well. This new approach is called consistent PLS (PLSc).
Furthermore, PLS-PM can be used for out-sample prediction purpose (Shmueli, Galit; Ray,
Soumya; Velasquez Estrada, Juan Manuel; Chatla, Suneel Babu ,2016).

Measurement Model
Partial least square path modeling was used to evaluate the measurement and structural model.
A confirmatory factor analysis was employed to test the reliability, convergent validity and
discriminate validity (Table 2 and 3). Beginning of the current study we assess the respective
loading and cross loading of the factors. This study considered a cutoff value for loading at
point 0.5 (Chin, 2010). All average variance extracts (AVE) and composite reliabilities (CR)
were found above the cutoff values of 0.5 and 0.7 respectively (Chin, 2010).
37
Table 2: Result of the measurement model

Constructs Items Loading AVE RC

Green Service r GSB1 0.918 0.844 0.901
Behavior GSB2 0.934
GSB3 0.920
GSB4 0.928
GSB5 0.907
GSB6 0.905
Job Position JP1 0.872 0.741 0.896
JP2 0.848
JP3 0.862
Performance Appraisal PA1 0.958 0.719 0.891
PA2 0.948
Recruitment RECT1 0.934 0.772 0.913
RECT2 0.941
RECT3 0.927
Rewards RWD1 0.900 0.726 0.935
RWD2 0.918
RWD3 0.910
Selection SECL1 0.911 0.733 0.905
SECL2 0.907
Training and T&D1 0.935 0.689 0.926
Development T&D2 0.923

Note: aAVE =Average Variance Extracted, bCR=Composite reliability.

Discriminant Validity

The discriminant validity was assessed by evaluating the correlations between constructs and
the square root of the AVE for that construct (Fornell & Larcker 1981). Table 3 depicts all the
square root of AVEs and found that the values of all the diagonal numbers are much greater
than the corresponding off-diagonal ones (Chin, 2010). Thus, this is also satisfactory and
measurement model fulfills its criteria to be accepted.

38
Table 3: Result of discriminant validity
GSB JP PA RECT RWD SECL T&D
GSB 0.919
JP 0.613 0.861
PA 0.558 0.588 0.953
RECT 0.579 0.402 0.366 0.934
RWD 0.621 0.544 0.496 0.568 0.879
SECL 0.527 0.475 0.504 0.508 0.574 0.901
T&D 0.690 0.602 0.486 0.575 0.698 0.486 0.929
Mean 3.71 3.69 3.91 3.88 3.76 3.81 3.92
S.D. 0.778 0.697 0.753 0.789 0.782 0.739 0.747

Note: Diagonals (in bold) represent the squared root of the AVE.
GSB= Green Service Behavior, JP= Job Position, PA = performance Appraisal, RECT =
Recruitment, RWD= Rewards, SECL= Selection, T&D= Training and Development.

Structural Model

This study created a structural model to measure the hypothetical link among the variables
where six dimensional green HRM is exhibited as exogenous latent variable affecting green
service behavior. In this study, 0.416 advocating 41.6% variance of the endogenous construct,
green service behavior, was explicated by the six-dimensional constructs of green HRM. The
result of the analysis exhibited the R2 is significant (above 0.25) according to Cohen (1988).
As shown in Table 4, the path from different dimension of green HRM to green service
behavior showed a significant positive relationship. Recruitment (β = 0.192, p < 0.01), selection
(β = 0.068, p < 0.01), training and development (β = 0.299, p < 0.01), performance appraisal
(β = 0.157, p < 0.01), and rewards (β = 0.085, p < 0.01) found significant influence on service
innovation. Whereas Job position (β = -0.185, p < 0.01) showed insignificant influence on
green service behavior.

39
Table 4: Result of partial squares path analysis
Path Std. Beta Std. Error T Value Decision
Not
Job Position > Green Service Behavior -0.185 0.042 -4.400 Supported
Recruitment > Green Service Behavior 0.192 0.044 4.406* Supported
Selection > Green Service Behavior 0.068 0.037 1.857* Supported
Training and Development > Green Supported
Service Behavior 0.299 0.044 6.804**
Performance Appraisal > Green Supported
Service Behavior 0.157 0.029 5.469**
Rewards > Green Service Behavior 0.085 0.054 1.778* Supported
Notes: *p < 0.05, **p < 0.01 (based on one-tailed test with 500 bootstrapping).

5.3 Summary
This study provides evidence that HRM constructs such as green HRM can affect employee
behaviors and attitudes. Green HRM was found to both directly and indirectly influence
employee green workplace behaviors and an employee’s intention to quit. The results
demonstrated that these effects occur through different social and psychological processes,
which supports current behavioral HRM literature (Jiang et al., 2012). A full discussion of these
effects, the relationships between all variables, the theoretical contributions that this study
makes to the green management and green HRM literature, the practical implications of the
results and the limitations and future research directions for green HRM, will be discussed in
the next, and final, chapter.

40
 CHAPTER 6 DISCUSSION AND CONCLUSION

Discussion:

This study offers an approach to studying Green HRM practices to shape employee green
service behavior for the organization. This model implies that employees’ behavior to adopt
green HRM is a function of performance appraisal, recruitment, reward, selection and training
and development.

The results of the PLS-structural equation modelling (SEM) analysis showed that the five
dimensions of GHRM had significant positive effect on employee green service behavior. Early
researchers had examined service behavior as an outcome of HRM. This study examined green
service behavior as an outcome of the functions of GHRM, which explains that, when an
organization promotes performance appraisal, recruitment, reward, and training and
development in their GHRM strategies, then employee can generate green service behavior in
the organization.

In the current study, H2 stated that performance appraisal would be positively related to
employees’ green service behavior. As some researchers suggested green performance should
be appraised, with subsequent outcomes for employee’s future promotional opportunities,
compensation and rewards (Shen, Dumont, Deng 2016).

Confirming H3, the findings show the potential candidates with a sound knowledge about
Greening can have some direct impact on promoting green behavior in the organization. So
proper recruitment including assessment about the green citizenship behavior has a positive
impact on green organizational behavior.

Likewise, supporting H4 the results of the study prove the importance of reward that can help
the employees to motivate about their greening activities. Furthermore, it can be elucidated that
a positive green psychological climate provides employees aware about behaviors which are
expected, valued, and rewarded by their organization (Norton et al., 2014).

H5 also stated a positive relation between selection and green service behavior. According to
(Renwick et al, 2008; Renwick et al, 2013) Considering candidates’ environmental concern
41
and interest as selection criteria brings positive green HRM activities in the organization.
proper green selection has positive relation with green service behavior.

Further, H6 the outcome of the analysis showed a significant effect of training and development
on green service behavior. Therefore, training reduces the fear of introducing new concepts
and helps to being adaptable about new service behavior. Hence, the findings of this study
support the positive effect of training on green service behavior as well.

Lastly, H1 the outcome of the analysis showed an insignificant relationship between job
position and green service behavior. From the outcome of the result it can be claimed that
employees in the organization considered post as the intangible return as their contractual
agreement with the organization and their outcome of their skills and requirements. Hence,
from the previous literature support and the findings the result can be considered acceptable.

The findings of this study appear to have important implications for green service behavior in
the HRM literature. HRM researchers can study GHRM impact on green service behavior and
implementation. The present model may be revised to combine other relevant HRM practices
into a single framework to add to contemporary knowledge by focusing on the overall impact
of GHRM variables on green service behavior.

Limitations and conclusion

The study has limitations. Using single respondent group is usually seemed as limitation when
the dependent and the independent variables have same source. Thus, future research should
be aimed at longitudinal study of these relationships. Finally, the study data come from a single
territory, future researchers can cover a wide range of area to ensure acceptability of the
findings.

The findings of the study support the hypothesized relationship between GHRM and Green
Service Behavior. Organizations should strive to design these GHRM activities as a drive to
achieve ultimate sustainability through green service behavior. Organization can create an
overall green culture for their CSR activities as well as their own positive participation to the
ongoing global green movement.

42
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ix
Appendix

Measurement model

Constructs Items Loading AVE RC

Green Service r GSB1 0.918 0.844 0.901
Behavior GSB2 0.934
GSB3 0.920
GSB4 0.928
GSB5 0.907
GSB6 0.905
Job Position JP1 0.872 0.741 0.896
JP2 0.848
JP3 0.862
Performance Appraisal PA1 0.958 0.719 0.891
PA2 0.948
Recruitment RECT1 0.934 0.772 0.913
RECT2 0.941
RECT3 0.927
Rewards RWD1 0.900 0.726 0.935
RWD2 0.918
RWD3 0.910
Selection SECL1 0.911 0.733 0.905
SECL2 0.907
Training and T&D1 0.935 0.689 0.926
Development T&D2 0.923

x
Partial squares path analysis

Path Std. Beta Std. Error T Value Decision

Not
Job Position > Green Service Behavior -0.185 0.042 -4.400 Supported
Recruitment > Green Service Behavior 0.192 0.044 4.406* Supported
Selection > Green Service Behavior 0.068 0.037 1.857* Supported
Training and Development > Green Supported
Service Behavior 0.299 0.044 6.804**
Performance Appraisal > Green Supported
Service Behavior 0.157 0.029 5.469**
Rewards > Green Service Behavior 0.085 0.054 1.778* Supported
Notes: *p < 0.05, **p < 0.01 (based on one-tailed test with 500 bootstrapping).

Figure: Standard Beta Value

RECT JP
0.192*
-0.185
*

SECL 0.068 GSB

* (R2=
0.299* 41.6%)
T&D *
0.157*
0.085
*
*
PA RWD

xi