Publication History
Published: February 01, 2023
Identification
D-0035
Citation
Asadul Jantan, Chong Kun, & Abdullah Al Mamun (2023). Impact of green recruitment on the organization sustainability: an empirical study of organizational performance. Dinkum Journal of Economics and Managerial Innovations, 2(02):120-133.
Copyright
© 2023 DJEMI. All rights reserved
120-131
Impact of Green Recruitment on the Organization Sustainability: An Empirical Study of Organizational PerformanceOriginal Article
Md Asadul Jantan 1, Chong Kun2, and Abdullah Al Mamun3,*
- Jahangirnagar University, Dhaka, Bangladesh; asaduljantan23@gmail.com
- Jahangirnagar University, Dhaka, Bangladesh; kchong@gmail.com
- Jahangirnagar University, Dhaka, Bangladesh; abdullahal3@gmail.com
* Correspondence: abdullahal3@gmail.com
Abstract: The effective implementation of green HRM is the most significant function among corporations in promoting the performance of diverse pharmaceutical supply organizations in Bangladesh. Improved adoption of these strategies leads to improved results. The performance of the business may be improved by the practice of GHRM. Pharmaceutical is a basic human necessity, which is why pharmaceutical supply organizational s are so important at both the national and local levels. Previous research has also emphasized the significance of pharmaceutical supply organizations. This study is based on the empirical investigation of green recruitment and selection on organizational sustainability. A questionnaire was used to collect data from Bangladesh pharmaceutical employees for the study. The questionnaire was divided into two main portions. The first part includes the demographical items (gender, age, employee position) of the respondents, and the second includes the items of the variables. This research is based on green recruitment and selection specifically. This research is purely related to the Bangladeshi context. Research revealed that Green HRM has an important and encouraging association with organizational performance. Moreover, Green HRM has a significant and positive relationship with Green recruitment and selection. Moderating effect has a significant and positive relationship with green recruitment and selection. So this research can be conducted in other countries to check out the variations in the results.
Keywords: green HRM, green recruitment, green selection, organizational performance
- INTRODUCTION
In any organization, performance prospects are referred to as critical. A major aspect of any company is the organization’s performance which is a crucial part of the organization’s success and betterment. For the survival of the market, organizational sustainability is a critical as well as a difficult segment to deal with [1]. To stay afloat in the market, most businesses are emphasizing performance. Because, in every market, competition is rising by the day, having a vital impact on the survival of businesses. It is unquestionably the most advantageous component for businesses that has spectacular effects on the survival as well as the success of the market, according to several domains associated with the performance of the company [2]. The success of pharmaceutical supply organizational s, like that of other businesses, is critical for survival. Pharmaceutical distribution corporations play an important role in many nations since they provide necessary products for everyday life. Furthermore, the pharmaceutical cannot be stored for an extended amount of time. As a result, pharmaceutical supply organizational s must ensure that pharmaceutical is available daily [3]. Pharmaceutical is a basic human necessity, which is why pharmaceutical supply organizational s are so important at both the national and local levels. Previous research has also emphasized the significance of pharmaceutical supply organizations. Bangladesh’s pharmaceutical business is also critical at the native and state levels [4]. It is extremely important to Bangladesh’s economy. Bangladesh’s financial development has a significant impact on the pharmaceutical sector. Bangladesh’s pharmaceutical sector contributes to the country’s economy. It contributes to the economy in a variety of ways. It has, for example, supported the growth of the local community [5]. Pharmaceutical organizational s acquire pharmaceutical products from various farmers in local locations, increasing people’s income. As a result, it is critical to society’s well-being. Furthermore, it has assisted by giving locals employment opportunities [6]. It boosts Bangladesh’s gross domestic product (GDP) by providing people with a variety of occupations. Furthermore, it has a direct impact on Bangladesh’s economic development, as evidenced by several studies that show a strong link between the economy and the pharmaceutical sector [7]. However, the pharmaceutical business is confronted with several market issues. Bangladesh’s pharmaceutical business, in particular, has many difficulties, including HRM practices [8]. Employee performance is inconsistent as a result of challenges with HRM processes. Employees’ long-term performance is weak in companies, which has a detrimental impact on organizational sustainability. As stronger HR practices are critical to a company’s performance in the market, they must be implemented [9]. Furthermore, green recruitment and green selection problematic things that may be rectified for these businesses to perform better. An important component of Bangladesh’s pharmaceutical supply industry is green recruitment and green selection [10]. Weaknesses in a company’s recruitment and selection system have a detrimental impact on the whole performance. In most businesses, green recruitment and green selection is the main and core area that leaves an impact on organizational sustainability [11]. Because there is a link between HRM and green recruitment and selection in various business enterprises, HRM practices have a low level of influence on the green recruitment and green selection of the companies, causing an increase or reduction in the performance of recruitment and selection operations. HRM issues may be remedied by applying green HRM practices [12]. Green HRM has a significant impact on employees, resulting in an improvement in employee performance. Employee performance has a favorable impact on the supply chain. As a result, to lessen the employee problem in pharmaceutical supply organizations, several green HR practices should be used [13]. Furthermore, by using green recruitment and selection, the issue with green recruitment and selection may be remedied. Green recruitment and selection is a crucial notion among businesses that plays a beneficial function in increasing company performance and the green recruitment and selection system [14]. As a result, implementing green HRM and green recruitment and selection is critical for managing a company in Bangladesh’s pharmaceutical industry [15].
- LITERATURE REVIEW
The resource-based view (RBV) contends that for organizations to boost productivity and gain an edge over competitors [16], they should develop strategies that bring value to the organization and foster synergy among their resources [17]. Environmental performance is a metric that may be used to gauge how well a company is doing in terms of putting environmental controls in place to lessen the harm that its industrial processes and waste cause to the environment. The practices employed in businesses and organizations to manage human resources are known as human resource management practices [18]. On the other side, GHRM approaches refer to specific green human resource management strategies, programs, and systems implemented in businesses or organizations to reduce adverse environmental effects while improving advantageous environmental benefits. Improving the company’s environmental performance is the long-term goal of green human resource management techniques [19]. The phrase “GHRM” is normally used to define the part of numerous practices of human resources and policies in an organization’s all goals related to the corporate environment. It relates to all employees who are working in the business to upkeep maintainable processes to improve employee responsiveness and commitment to various sustainability challenges [20]. Green HRM is a comparatively new idea that provides numerous welfare for businesses. Due to the current surge in interest in green HRM, numerous academic researchers have been conducted on it. These procedures are crucial for organizational s due to their many advantages. Both directly and indirectly [21], it has a big effect on how successful businesses are. Employees indirectly influence it. The performance of employees is greatly influenced by green human resource management. It may improve performance generally, which enhances business performance. Previous studies have demonstrated that employing green human resource management affects workers’ productivity [22]. As a consequence, green HRM cannot be overlooked in the pharmaceutical business. The effective implementation of green HRM is the most significant function among corporations in promoting the performance of diverse pharmaceutical supply organizations in Bangladesh. Improved adoption of these strategies leads to improved results. The performance of the business may be improved by the practice of GHRM [23]. In certain critical elements, the process of selection and recruiting takes precedence. Its primary focus is on the connection between employees and management [24], as well as potential improvements. The fact that the choice to recruit or not hire a person reinforces the whole domain of personnel management demonstrates its relevance. When it comes to excluding someone from the company, fairness, professionalism, and ethical behavior are necessary. As a result, employee performance is critical in the following aspect [25]. Emphases are about identifying high-performing areas and people in which they may excel. Organizational s are already discovering that establishing an image as a green employer is a powerful tool for recruiting fresh talent.
H1: Green Human Resource Management has a significant impact on the organization’s Performance
H2: Green Human Resource Management is having a significant impact on Green Recruitment and Selection
H3: Green Recruitment and Selection is having a significant impact on organizational Performance
H4: Green Recruitment and Selection mediates the relationship between Green Human
Resource Management and organizational performance.
Figure 01: Research Model
Mannesmann, BASF, Bayer, Siemens, and BASF are just rare companies in Germany that leverage green environmentally and image responsible operations to recruit top personnel. In the United Kingdom, the Rover Group vehicle manufacturer incorporated environmental duties in every job description [26]. Green recruiting is the process of employing employees in a company that has environmental management behavior, knowledge, and abilities. A study reveals that the recruiting process may help organizations crop fruitful performance, especially a performance that becomes cause to connect to the environment of the organization, by confirming that afresh appointed worker is conscious about the organization’s cultural environment and can support the organization’s ideas related to the environment [27]. The link between GHRM and GR and the green selection and organizational sustainability is depicted in Figure 1.
- MATERIALS AND METHODS
The current study examines the relationship between GHRM, GR, and GS and organizational sustainability through the moderating function of organizational performance. In this experiment, the questionnaire was typically divided into two groups. (For instance, queries on demographic details like the participants’ age, gender, position/rank, particular characteristics, etc.) It was decided to use both items that were customized to the goals of this research and those that have been validated in the literature. All questions were graded using a Likert scale with a maximum score of 5, with 1 representing “strongly disagree” and 5 representing (strongly agree). While 1 means strongly disagree, 2 means agree, 3 means neutral, 4 means agree, and 5 means highly agree. To investigate the association between green recruiting and green selection, a self-administered questionnaire was developed. Scale questions about the primary variables of the study—GHRM, green recruiting and selection, organizational sustainability, and organizational performance —were used to create the questionnaires. The objective of the survey was to compile overall information about the participants. On the foundation of past research, the survey remained created. Finally, a five-point Likert scale questionnaire was developed for this study. Employees in the pharmaceutical industry received a link to an online survey created with Google Forms. The respondents to the questionnaire were questioned about their views on the topic of the study. The goal of the study was mentioned in the questionnaire. Surveys are obtained from respondents by the researcher. The remainder of the questionnaires chosen for testing the results contained several that were ineffective due to inaccuracies.
- RESULTS AND DISCUSSION
This section, which is broken into four sections, discusses the findings of the statistical data analysis. In the first occurrence, descriptive statistics were employed to examine the respondents’ characteristics and outcomes. The second section discusses the results of the measurement model assessment. Finally, the model’s hypothesis testing and prediction significance are discussed.
4.1 Response Rate
In the pharmaceutical company of district Dhaka, N=960 questionnaires were distributed for data collection among the pharmaceutical employees. All pharmaceutical employees of Dhaka were willing to participate in the survey. Only 815 of the 960 surveys issued were returned. Despite this, 40 instances were eliminated, 31 of which were incomplete. As a result, only 744 questionnaires with a valid response rate of 77.5 percent were chosen for data analysis. This response rate was achieved via significant effort and hard work. Furthermore, because the surveys were self-administered, the response was rather strong.
4.2 Data normality
Although data normality is not required for PLS-SEM, it is crucial to achieve data normality before using inferential statistics. As a consequence, this investigation validated the data normality using the Skewness, Kurtosis, and histogram plots as suggested [28]. The study used software to assess the data normality and for screening and cleaning before applying the Smart PLS tool for hypothesis testing. To show the normal distribution, values of kurtosis and skewness between -3 and +3 are acceptable. As a result, all element values fell within the normal Skewness and Kurtosis ranges. There were several missing values in the PSD and NER elements. The researcher corrected this by utilizing the SPSS and correcting the missing value procedure. The researcher examined the demographics to determine the characteristics of the participants and used descriptive statistics tests provided by (IBM SPSS Statistics 25) software to determine the characteristics and mean of the data. The dependability has been verified (IBM SPSS statistics 25). All of the factors were dependable. There were no anomalies discovered in the data. As a result, the data was ready for Smart PLS Software to run the test.
4.3 Common method bias
Even a single questionnaire responder might make a common inaccuracy. Kock (2015) discovered that employing (PLS-SEM) partial least squares is prone to biases. Using (PLS-SEM), the author contends that full collinearity may be used to assess the effectiveness of the common approach. Using the variance inflation factors (VIF) created by the full collinearity test, the value of VIF should be less than 5, and the VIF value of all items in this study was less than 5. As a result, there is no interdependence among independent variables.
4.4 Results of measurement model assessment
4.4.1 Convergent validity
To verify convergent validity, the measurement model was tested using loadings, average variance extracted (AVE), and composite reliability (CR). The extracted average variance (AVE) value should be larger than 5, and the composite reliability (CR) value should be better than 0.70. The table demonstrates that the AVE values are more than 0.05 and the composite reliability (CR) values are greater than 0.70… Alpha should be set to 0.70. Furthermore, factor loading should be larger than 0.05. All of the values match the usual values of AVE, CR, APHA, and Factor Loading.
Table 01: Convergent Validity
4.4.2 Discriminant validity
Discriminant validity assesses how effectively one variable may be distinguished from another [29]. In this work, the (FLC) and (HTMT) criteria were employed to measure discriminant validity [30].
4.4.3 Fornell and Larcker
The square root of the AVE was used for all constructs and compared to the correlation coefficients of other variables when investigating discriminant validity using the FLC [31]. The AVE square root coefficients are displayed diagonally in the correlation matrix. To show discriminant validity, the square root AVE values must be higher than the squared correlation estimations [32]. The correlation of AVE square root values and the other factors differed in a statistically meaningful way. All constructs demonstrated strong discriminant validity since, in the relevant rows and columns; all diagonal values were greater than off-diagonal elements. This study’s researchers also looked at how things were loaded across. Hair and colleagues [33] proposed loading estimates of 0.50 or above and, in the ideal situation, 0.70. Items with low factor loadings, on the other side, should be removed for the time being. Apart from that, all components of construction should be substantially loaded onto their conferred [34]. In our examination, we discovered that all goods had a higher factor loading than their cross-loadings. Because each indicator had its underlying construct, there was no cross-loading.
Table 02: Fornell and Larcker
4.4.4 HTMT
When it came to discriminant validity, Henseler and colleagues [35] provided an advanced criterion (HTMT) and agreed that FLC is a suitable way of evaluating discriminant validity. The FLC, on the other hand, is unable to detect the absence of discriminant validity in a range of research circumstances. The HTMT was used to examine the discriminant validity of the Constructs and findings are reported in the table below. Neither of the constructs had a discriminant validity value greater than 0.90.
Table 03: Discriminant Validity
4.5 Smart PLS-SEM Results
After the model and data have been measured, the hypothesis will be tested. The researcher utilized t-values and standard errors to assess the model’s significance. Smart PLS 3 was used to assess the primary and indirect effects of the hypotheses using the bootstrapping approach [36]. The theory has been tested in two parts. The direct influence of the key variables is shown in the first table of the path analysis, and the indirect hypothesis analysis is shown in the second table of the path analysis.
Figure 02: Structural Model Assessment
So, in the first table of the path analysis, as displayed, Green HRM has a significant and positive relationship with organizational s performance (β 0.317, Std 0.038, T-Value 8.333, P-value 0.000, LL 0.241, UL 0.383. The values of the relationship were under the acceptable range. Thus, H1 is supported.
Table 04: Path Coefficients Analysis
Note: *p < 0.05 (t >1.65); **p < 0.01 (t > 2.33)
Moreover, Green HRM has a significant and positive relationship with green recruitment and selection (β=0.466, std = 0.050, t-value=9.269, p-value =0.000, LL=0.359, UL=0.563). The values of the relationship were under the acceptable range. Thus, H2 is supported. Moreover, Green recruitment and selection have a significant and positive relationship with organizational performance (β=0.600, std =0.035, t-value= 16.989, p-value= 0.000, LL= 0.534, UL= 0.668). The values of the relationship were under the acceptable range. Thus, H3 is supported,
Moreover, Moderating Effect 1 has a significant and positive relationship with green recruitment and selection (β= -0.058, std = 0.046, t-value = 2.320, p-value= 0.021, LL = -0.108, UL= -0.013). The values of the relationship were under the acceptable range. Thus, H4 is supported. Moreover, the mediating effect of the Green Recruitment and Selection was found to be significant (β= 0.280, std =0.034, t-value=8.181, p-value =0.000, LL =0.237, UL=0.370). Thus, the mediating hypothesis is also supported by the current research study. It has a significant and positive relationship with Green Recruitment and selection (β= 0.313, std = 0.046, t-value = 6.868, p-value = 0.000, LL = 0.223, UL = 0.397). The values of the relationship were under the acceptable range.
Table 05: Specific Indirect Effects
Note: *p < 0.05 (t >1.65); **p < 0.01 (t > 2.33)
- CONCLUSIONS
The research is based on the Empirical Investigation of selection and green recruitment proceeding organizational presentation from Bangladesh. Several studies have observed the pharmaceutical area from various perspectives [37]. These previous researches, however, did not look at the impact of green human resource management and green recruitment and selection on organizational performance. [38]. For this research, the questionnaire was normally divided into two groups. (For instance, questions regarding the participants’ age, gender, position/rank, and other demographic details, among other things, are all examples of demographic attributes) [39]. To best serve the goals of this study, it was decided to use both items that had been validated in the literature and ones that were specifically tailored to them. On a Likert scale of 1 (strongly agree) to 5, each item was given a score (strongly agree) [40]. Whereas; 1 represents strongly disagree, 2 indicates to disagree, 3 denotes neutral, 4 denotes to agree, and 5 denotes strongly agree. A self-administered questionnaire was created to examine the association between green recruitment and green selection [41]. The primary variables of the study, including green HRM, green recruiting and selection, and organizational performance, were scale questions that were used to create the questionnaires [42]. The questionnaire aimed to collect common data about the participants. The survey was created and constructed using past research. The investigation’s final tool was a five-point Likert scale questionnaire. Data collection was done using Google Forms. Pharma employees received an email with a link to an online survey created with Google Forms. The respondents were questioned about their thoughts on the topic of the study. The research’s purpose was specified in the questionnaire. The responders fill out 630 questionnaires for the researcher. A few of the questionnaires chosen for the results testing were not useful due to mistakes in the other questionnaires. Research revealed that Green HRM has an important and encouraging association with organizational performance. The values of the relationship were under the acceptable range. Thus, H1 is supported [43]. This means that the Green HRM will increase its productivity in the pharmaceutical. Industry, then the organizational s performance will increase. Moreover, Green HRM has a significant and positive relationship with Green recruitment and selection. The values of the relationship were under the acceptable range [44]. Thus, H2 is supported. This means that if the Green HRM increases its productivity in the pharmaceutical industry, then green recruitment and selection will be improved. Moreover, Green recruitment and selection have a significant and positive relationship with organizational performance. The values of the relationship were under the acceptable range [45]. Thus, H3 is supported. This means that if green recruitment and selection improve its productivity in the pharmaceutical industry, then the organization’s performance will be increased. Moreover, Moderating effect has a significant and positive relationship with green recruitment and selection [46]. The values of the relationship were under the acceptable range [47]. This research is based on green recruitment and selection specifically; the other researchers can use other green HRM dimensions. This research is purely related to Bangladesh. So same research can be conducted in other counties to check out the variations in the results. Other variables may use with the relationship of the organization’s performance, such as green involvement, green planning for HR, green performance management, etc.
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Publication History
Published: February 01, 2023
Identification
D-0035
Citation
Asadul Jantan, Chong Kun, & Abdullah Al Mamun (2023). Impact of green recruitment on the organization sustainability: an empirical study of organizational performance. Dinkum Journal of Economics and Managerial Innovations, 2(02):120-133.
Copyright
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