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Impact of Green HRM Practices on Organizational Commitment and Job

Satisfaction

Article · March 2021

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 Wesleyan Journal of Research, Vol 13 No 69 (March 2021) Research article: (Mgmt.)

Impact of Green HRM Practices on Organizational Commitment and Job

Satisfaction
Dr. Khushboo Sharma1 and Falguni Agarwal2
1
Associate Professor, Sangam University, Bhilwara, India.
2
Research Scholar, Sangam University, Bhilwara, India.
khushboosharma2010@gmail.com
Abstract: Green HR is an effervescent concern in the corporate world. The green HR practices
are emerging as a new concept for sustainable organization and society. The implementation of
Green HR is exclusively reliant on the leaders and management style and the employees play a
pivot role in execution. The increasing role of employee reveal the impact of Green HR practices
in the banking sector and thus job satisfaction should also be considered while framing policies
to increase organizational commitment . Environmental concern has become a matter of utmost
concern and its implementation can reduce the environmental issues and increase job
satisfaction. The green initiatives are undertaken by banks for future opportunity and extension
of the banking industry to protection of humanity. The awareness towards social morals and eco-
friendly sensitization increases the reliability of banking industry and so the banks are innovating
its HR functions with a new perspective. The Hr practices are now aligned with sustainability
goals reflecting an eco-centric focus. This study is undertaken to explore the impact of green
HRM on employee’s performance, organizational commitment and job satisfaction with special
reference to banking industry. The study was conducted in selected private banks with a sample
size of 500 respondents and primary data was collected to test the significant impact of
independent variable green HR practices on dependent variable organizational commitment and
job satisfaction.
Keywords: Green HRM, Job Satisfaction, Green Banking, Employee Performance.

Article History
Received: 12/02/2021; Accepted: 06/03/2021
Corresponding author: Dr. Khushboo Sharma, Email id: khushboosharma2010@gmail.com

Introduction

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Wesleyan Journal of Research, Vol. 13 No. 69
Environmental sustainability refers to preserving the environment for future generations and
support human life. It is an action that involves decision making that protects the natural world
and realise the full impact of business organizations on the environment. Thus, we can
understand the concept of sustainable solutions to business problems and drafting responsible
decisions that helps to minimise negative impact of external forces on environment. The
sustainability issues related to environment are not only concerned with reduction of waste,
energy consumption but rather it initiates development of processes which helps businesses to
carry their process in environment savvy pattern. Green HR involves implementation HR
policies and practices for sustainable use of resources within banking to promotes environmental
sustainability. Managing service industry through green process and policy ensures development
of environmental management strategies by banking industry to overcome the destruction of
environment and make a balance between development of banks as well as sustainability of
future generations. Green HRM is the greening of functional dimension of HRM such as job
description, job analysis, recruitment, selection, training, performance management and rewards.
The main focus of green HRM practices banking industry while initiating innovative practices is
optimum utilization of resources with saving time and other factors of production resulting in
cost effectiveness. The corporate initiatives to implement green HRM policies involves high
levels of management and technical skills to develop the employees and create environment
focused operations to gain employee support and creating a work environment which includes a
positive mindset towards environment protection for the well-being of socio-economic condition
of organization as well as society at large. Therefore, organizational commitment is to be
induced by making employees proactive towards increasing performance and effectiveness
through innovative strategies which ultimately improves employee performance and increases
job satisfaction.
Organizational Commitment
Organizational commitment includes three basic factors related to acceptance of organizational
values, considerable effort to achieve organizational goals and a strong desire for organizational
relationship which ensures that commitment is a individual’s bonding towards organization and
includes loyalty and belief with a sense of involvement to invest efforts for self -identification
and progress. It improves the relationship of employee and employer and can benefit both to
improve the relative strength and commitment. Previous researches have accepted the influence

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Wesleyan Journal of Research, Vol. 13 No. 69
of organizational commitment on performance and acceptability of innovative practices which
influence employees well being with a mutual benefit. Today, being green has become a norm
and greening is a holistic concept to use sustainable resources in efficient and responsible
manner for conversion of organizational culture a green phenomenon to increase efficiency by
revamping HR practices .
Review of Literature
Pham, Tuckova & Phan (2019) created a research oriented to bridge the research gap which
extended to various theories, green context to develop a strong conceptual framework of direct
and indirect green HRM practices and the impact is analysed on employee environment. The
findings of the study reveal best practices directly stimulate employees to be committed and a
two way interaction to green training and development can establish a green organisational
culture which positively raises employee commitment. The research studies the effect of
various green HRM practices like green training, green reward and green organisation. The
contribution suggest that social exchange theory can provide a clear understanding of
theoretical aspect and practical aspect for directly influencing the employees, commitment
towards organisational environment.
Sheikh, Islam & Rahman (2019) was concerned about adoption of green strategies by business
leaders to frame sustainable practices and increase commitment of employees. Green issues that
can add a new platform for responsibility towards environment. The green HR policies can play
a vital role in effective implementation of environmental strategy with the help of various tools
and technologies in a cost-effective manner. The HR managers can build an organisational
infrastructure for the benefits of green HRM and continuous improvement of corporate with the
incorporation of the green concept. The study concludes that green HRM is still in infant stage
but the rising need around the globe as compelled organisations to follow green he philosophy
by creating awareness, training the employees, development of tools and models to make green
organisational environment which can contribute to reduction of cost and also many other non-
financial rewards by executing green movement.
Singh (2019) explored the various environmental factors which affect the organizational
wellbeing and suggests that due to the increasing turbulences in external environment,
organizations need to be more competitive and brainstorm to evaluate and update innovative
practices of HRM. The human resource should be considered as the most valuable asset and

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Wesleyan Journal of Research, Vol. 13 No. 69
green practices along with HRM can be the modest solution to integrate HR with eco-friendly
initiatives to keep a pace with the changing environment. This integration can upgrade the
HRM to yield a competitive edge and can benefit all the components of human resource
management. The study specifically explains the five R’s of green practices which can be
implemented in recruitment and selection like reduce, reuse, recycle, replenish and restore. The
paper focuses on recruitment and selection policies that can be integrated with green practices
accordingly balancing the availability of resources and their utilisation for environment
sustainability. Green activities can facilitate organizations to have cost benefit analysis for
optimum utilisation of resources and to increase the motivation of employees for committed
performance.
Objectives of the study
• To analyse the impact of green HRM practices on job satisfaction
• To study the influence of green HRM practices on organizational commitment
Hypothesis
Ho1: There is no significant relationship betweenimplementation of Green HR practices and
organizational commitment
Ho2: There is no significant impact of green HR practices on job satisfaction in banking industry
Research Methodology
The research design used here is analytical wherein the primary data collected is analysed and
critically evaluated. It is primarily concerned with testing of hypothesis and specifying and
interpreting relationships between dependent and independent variables. Convenient random
sampling was adopted for collecting the primary data through questionnaire from the bank
employees.

Job Total
Green HRM Satisfaction
Practices Yes No
Planning 24 51 75
Recruitment 78 50 128
Selection 32 44 76
Performance 41 22 63

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 UGC Care-listed | ISSN: 0975-1386 | Peer-reviewed
Wesleyan Journal of Research, Vol. 13 No. 69
Evaluation
Training & 28 34 62
Development
Career 17 30 47
Management
Rewards 12 37 49
Total 232 268 500
Interpretation: The green HRM practices are influenced by organizational commitment and
whether they tested job satisfaction or not is observed by cross tabulation of data. The various
green HRM practices like planning, recruitment, selection, performance evaluation, training &
development, career management and rewards are observed with job satisfaction of employees
working in private sector. Out of total 500 respondents, 232 respondents are satisfied with their
job and 268 are not satisfied. Out of 232 maximum are satisfied with recruitment and
performance evaluation but less are satisfied with reward and career management. To see
whether these differences are significant or not ANOVA test was applied on the data.

ANOVA Result
One way ANOVA was applied to test the hypothesis that there is no significant relationship
between implementation of Green HR practices and organizational commitment. The source of
variation between groups and within groups as calculated to get the F ratio. Since the value of F

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Wesleyan Journal of Research, Vol. 13 No. 69
at 95% level of significance is less than the critical value F(2,21) = 3.4668. we can say that the
difference is insignificant and the null hypothesis is accepted. Thus, it statistically proves that the
difference in sample means is insignificant and there is no significant relationship between
organizational commitment towards green HRM and job satisfaction.
Green HRM practices does not have a significant relationship with organizational commitment
Organizational
commitment
Green yes no Total
HRM
practices
Y 263 36 299
N 82 119 201
Total 345 155 500

Tabular Calculated Degree of H0 Accepted or

Value Value Freedom Rejected
3.84 125 1 rejected

Interpretation: The calculated value of chi square is much higher than the tabular value at .05
significance level and 1 degree of freedom. So, the null hypothesis is rejected and we can
statistically interpret that green HRM practices have a significant relationship with
organizational commitment.
Findings & Conclusion
The findings of the paper revealed that various green HRM practices influence organizational
commitment but there is no significant relationship between organizational commitment and job
satisfaction of employees. It was statistically proved that green HRM practices have a significant
relationship with organizational commitment and the two variables understudy are closely
associated which suggest that with the increase turbulence in external environment organizations
need to implement innovative practices and upgrade the HRM to green HRM for balancing the
utilization of resources and upsurge the employees commitment towards organization. A green
environment can contribute towards increased motivation and development of a organizational

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Wesleyan Journal of Research, Vol. 13 No. 69
culture with green framework to positively influence employees commitment and ultimately
results in establishment of accountability towards organization and society through a eco friendly
orientation. The HR practices in banking industry need to be transformed drastically to increase
performance, commitment and satisfaction of employees and green policies can lead to better
competitive advantage for resilience of banks. Further research can be carried out with individual
dimensions of green HRM practices and its relationship with dependent variables like
productivity, performance, employee engagement, work culture and so on. Green HRM practices
leads to sustainable solutions which may be studied further to develop sustainable models for
banking industry.
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