Dinkum Journal of Economics and Managerial Innovations (DJEMI).

Publication History

Submitted: April 8, 2023

Accepted: April 20, 2023

Published: May 01, 2023

Identification

D-0056

Citation

Md Abdullah Jantan and Abdullah Al Mamun (2023). Impact of green human resource management on the sustainable performance of the organization. Dinkum Journal of Economics and Managerial Innovations, 2(06):327-339.

Copyright

© 2023 DJEMI. All rights reserved

Impact of green human resource management on the sustainable performance of the organizationOriginal Article

Md Abdullah Jantan 1 and Abdullah Al Mamun 2*

  1. Jahangirnagar University, Dhaka, Bangladesh; asaduljantan23@gmail.com
  2. Jahangirnagar University, Dhaka, Bangladesh; abdullahal3@gmail.com

*             Correspondence: abdullahal3@gmail.com

Abstract: The implementation of green human resource management plays a crucial role in enhancing the performance of various pharmaceutical supply organizations in Bangladesh. Enhanced implementation of these strategies correlates with enhanced outcomes. The implementation of green human resource management has the potential to enhance the overall performance of the business. The provision of pharmaceuticals is considered an essential requirement for human well-being, thus underscoring the significance of pharmaceutical supply organizations at both the national and local scales. Prior studies have also underscored the importance of pharmaceutical supply organizations. This study aims to examine the influence of Green Human Resource Management on the sustainable performance of organizations. The study involved the primary data collection of health-related information through the administration of questionnaires among pharmaceutical employees in Bangladesh. The survey was partitioned into two primary sections. The initial section encompasses the demographic characteristics (such as gender, age, and employee position) of the participants, while the subsequent section encompasses the variables under investigation. This study is centered around the topic of green recruitment and selection. This study is exclusively focused on the context of Bangladesh. The findings of the study indicate that there exists a significant and positive correlation between the implementation of green human resource management practices and the overall performance of organizations. Additionally, there exists a noteworthy and favorable correlation between green human resource management and the practices of green recruitment and selection. The relationship between moderating effect and green recruitment and selection is found to be both significant and positive. This study has the potential to be replicated in different countries in order to examine potential variations in the findings.

Keywords: green human resource management, GRHM, green selection, organizational performance

  1. INTRODUCTION

Performance prospects are commonly regarded as crucial within any organization. The performance of an organization is a significant facet that plays a pivotal role in the success and improvement of the company. The preservation of the market necessitates the careful management of organizational sustainability, which is both crucial and challenging [1]. In order to maintain viability in the market, the majority of businesses are placing a strong emphasis on performance. The increasing competition in various markets is significantly influencing the viability and sustainability of businesses. According to various domains pertaining to corporate performance, it is widely acknowledged that this particular component holds significant advantages for businesses, exerting remarkable influence on their survival and market success [2]. The viability of pharmaceutical supply organizations, similar to other enterprises, is of paramount importance for their continued existence. Pharmaceutical distribution corporations play a significant role in numerous countries as they facilitate the provision of essential products for daily living. In addition, it is not feasible to store the pharmaceutical product for a prolonged duration. Consequently, it is imperative for pharmaceutical supply organizations to guarantee the daily availability of pharmaceutical products [3]. The provision of pharmaceuticals is considered an essential requirement for human well-being, thus underscoring the significance of pharmaceutical supply organizations at both the national and local scales. Prior studies have also underscored the importance of pharmaceutical supply organizations. The pharmaceutical industry in Bangladesh holds significant importance both at the local and national levels [4]. The significance of this factor to the economy of Bangladesh cannot be overstated. The financial development of Bangladesh exerts a substantial influence on the pharmaceutical industry. The pharmaceutical industry in Bangladesh plays a significant role in the nation’s economic development. It provides various contributions to the economy. 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]. Nevertheless, the pharmaceutical industry is currently faced with a multitude of market challenges. The pharmaceutical industry in Bangladesh faces numerous challenges, notably in the realm of human resource management practices [8]. The inconsistency of employee performance can be attributed to the challenges encountered in human resource management (HRM) processes. The long-term performance of employees in companies is found to be subpar, leading to negative consequences for organizational sustainability. The implementation of robust HR practices is imperative for a company’s market performance [9]. Moreover, the implementation of green recruitment and green selection practices presents challenges that must be addressed in order to enhance the performance of these organizations. Green recruitment and green selection are crucial elements of Bangladesh’s pharmaceutical supply industry [10]. The presence of deficiencies in a company’s recruitment and selection system can have a deleterious effect on overall performance. Green recruitment and green selection are crucial aspects in the majority of businesses, as they significantly influence organizational sustainability [11]. The relationship between Human Resource Management (HRM) and green recruitment and selection in different business organizations is evident. HRM practices exhibit a limited degree of impact on the green recruitment and green selection processes within these companies, thereby affecting the efficacy of recruitment and selection operations. The application of green HRM practices has been suggested as a potential solution to address HRM issues [12]. The implementation of Green HRM has a notable influence on employees, leading to an enhancement in their performance. The performance of employees exerts a positive influence on the supply chain. In order to mitigate the issue of employee challenges within pharmaceutical supply organizations, it is recommended to implement a range of environmentally conscious human resource practices [13]. Moreover, the implementation of green recruitment and selection practices has the potential to address the challenges associated with green recruitment and selection. The concept of green recruitment and selection is of utmost importance in the corporate sector, as it serves to enhance company performance and the overall effectiveness of the green recruitment and selection system [14]. Consequently, the implementation of green HRM and green recruitment and selection practices assumes utmost importance in the management of companies operating within Bangladesh’s pharmaceutical industry [15].

  1. LITERATURE REVIEW

According to the resource-based view (RBV), in order to enhance productivity and achieve a competitive advantage, organizations should formulate strategies that create value for the organization and promote synergy among its resources [16, 17]. The measurement of environmental performance is a quantifiable indicator that can be utilized to assess the effectiveness of a company’s efforts in implementing environmental safeguards to mitigate the negative impact of its industrial operations and waste on the natural environment. The term “human resource management practices” refers to the strategies and techniques implemented by businesses and organizations to effectively handle their human resources [18]. On the contrary, GHRM approaches pertain to distinct strategies, programs, and systems of green human resource management that are implemented within businesses or organizations with the aim of mitigating negative environmental impacts and enhancing positive environmental outcomes. The long-term objective of implementing green human resource management techniques is to enhance the environmental performance of the company [19]. The acronym “GHRM” typically refers to the integration of various human resource practices and policies within an organization, specifically aimed at achieving the overall objectives of the corporate environment. This pertains to all employees within the organization who are responsible for maintaining sustainable processes in order to enhance employee responsiveness and commitment towards addressing various sustainability challenges (Author, Year, p. 20). Green Human Resource Management (HRM) is a relatively recent concept that offers various advantages for organizations. As a result of the prevailing upswing in the level of interest surrounding green human resource management (HRM), a substantial body of academic research has been undertaken in this domain. These procedures play a critical role in organizations due to their numerous advantages. Both directly and indirectly, the impact of [21] on the success of businesses is significant. Employees have an indirect impact on it. The efficacy of employees is significantly impacted by the implementation of green human resource management practices. Improvements in performance have the potential to enhance overall business performance. Prior research has indicated that the implementation of green human resource management practices has a significant impact on the productivity of employees [22]. Therefore, it is imperative to acknowledge the significance of green HRM within the pharmaceutical industry. The implementation of green HRM plays a crucial role in enhancing the performance of various pharmaceutical supply organizations in Bangladesh, making it the most significant function for corporations in this context. Enhanced implementation of these strategies is associated with enhanced outcomes. The implementation of GHRM has the potential to enhance the overall performance of the business [23]. The process of selection and recruitment assumes priority in specific crucial aspects. The primary emphasis of this study lies in examining the relationship between employees and management [24], along with exploring potential avenues for enhancement. The significance of the decision to recruit or refrain from hiring an individual underscores the broader scope of personnel management, thereby highlighting its relevance. In the context of terminating an individual’s affiliation with a company, it is imperative to uphold principles of fairness, professionalism, and ethical conduct. Therefore, the significance of employee performance is crucial in the aforementioned aspect [25]. Emphases involve the identification of areas and individuals that exhibit exceptional performance potential. Organizations are increasingly recognizing that cultivating a reputation as an environmentally conscious employer can serve as a potent strategy for attracting and retaining young, skilled professionals.

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.

  1. MATERIALS AND METHODS

The present study investigates the correlation between Green Human Resource Management (GHRM), Green Routines (GR), and Green Supply Chain (GS) practices, and their impact on organizational sustainability, with a focus on the moderating role of organizational performance. In this experimental study, the questionnaire was divided into two distinct groups. (For example, inquiries regarding demographic information such as the age, gender, occupation, specific attributes, etc.) The decision was made to incorporate a combination of customized items tailored to the specific objectives of this study, as well as items that have been previously validated in existing scholarly literature. The Likert scale was employed to grade all questions, with a maximum score of 5. A score of 1 denoted “strongly disagree,” while a score of 5 indicated “strongly agree.” The numerical scale used in this context assigns a value of 1 to indicate a strong disagreement, a value of 2 to indicate agreement, a value of 3 to indicate neutrality, a value of 4 to indicate agreement, and a value of 5 to indicate a high level of agreement. In order to examine the correlation between green recruiting and green selection, a self-administered questionnaire was formulated. The questionnaires were developed using scale questions pertaining to the main variables of the study, namely GHRM, green recruiting and selection, organizational sustainability, and organizational performance. The primary aim of the survey was to gather comprehensive data regarding the participants. Based on previous scholarly investigations, the survey was developed. In this study, a questionnaire utilizing a five-point Likert scale was ultimately devised. The employees within the pharmaceutical industry were provided with a hyperlink to an internet-based survey that was generated using Google Forms. The participants who completed the survey were queried regarding their perspectives on the subject matter under investigation. The objective of the study was indicated within the questionnaire. The researcher acquires surveys from respondents. A number of questionnaires selected for evaluating the outcomes were found to be ineffective as a result of inaccuracies.

  1. 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)

 

  1. CONCLUSIONS

This study is grounded in an empirical investigation that explores the process of selection and green recruitment within organizational contexts in Bangladesh. Multiple studies have examined the pharmaceutical sector from diverse angles [37]. However, prior studies have not examined the effects of green human resource management and green recruitment and selection on organizational performance. The user has provided a numerical reference, indicating the presence of a citation or source. In this study, the questionnaire was typically partitioned into two distinct groups. For example, demographic attributes encompass various factors such as age, gender, position/rank, and other relevant demographic details [39]. In order to effectively align with the objectives of this research, a decision was made to incorporate a combination of validated measures from existing scholarly literature and custom-designed instruments. Each item in the study was assigned a score on a Likert scale ranging from 1 (indicating strong agreement) to 5, with a score of 5 representing strong agreement [40]. The numerical scale used in this study assigns a value of 1 to strongly disagree, 2 to disagree, 3 to neutral, 4 to agree, and 5 to strongly agree. A self-administered survey instrument was developed in order to investigate the correlation between green recruitment and green selection [41]. The study employed several key variables, namely green HRM, green recruiting and selection, and organizational performance. These variables were assessed through the use of scale questions, which were subsequently incorporated into the questionnaires [42]. The objective of the questionnaire was to gather general information from the participants. The survey was developed and designed based on prior scholarly investigations. The final instrument employed in the investigation was a questionnaire utilizing a five-point Likert scale. The process of data collection was conducted utilizing the Google Forms platform. The pharmaceutical industry personnel were sent an electronic mail containing a hyperlink to an internet-based questionnaire generated through the utilization of Google Forms. The participants were queried regarding their perspectives on the subject matter under investigation. The purpose of the research was delineated in the questionnaire. The participants completed a total of 630 questionnaires as part of the research study. Several of the selected questionnaires for the purposes of result testing were deemed ineffective as a consequence of errors present in the remaining questionnaires. The findings of the study indicate that there is a significant and positive correlation between the implementation of Green HRM practices and the overall performance of organizations. The values of the relationship fell below the acceptable threshold. Therefore, the findings of reference 43 provide support for hypothesis H1. This implies that the implementation of Green HRM practices in the pharmaceutical industry will lead to an enhancement in productivity. Consequently, the overall performance of the organization will also experience an improvement. Furthermore, it is worth noting that Green Human Resource Management (HRM) exhibits a noteworthy and favorable correlation with Green recruitment and selection practices. The values of the relationship fell below the acceptable threshold [44]. Therefore, the hypothesis H2 is supported. This implies that an enhancement in productivity within the pharmaceutical industry by implementing Green HRM practices would result in the improvement of green recruitment and selection processes. Furthermore, there exists a notable and favorable correlation between the practice of Green recruitment and selection and the overall performance of organizations. The values of the relationship fell below the acceptable threshold [45]. Therefore, the hypothesis H3 is supported. This implies that the implementation of green recruitment and selection practices in the pharmaceutical industry has the potential to enhance productivity, thereby positively impacting the overall performance of the organization. Additionally, it has been found that there is a noteworthy and favorable correlation between the moderating effect and green recruitment and selection [46]. The values of the relationship fell below the acceptable threshold [47]. This study focuses on the topic of green recruitment and selection, while other scholars may explore additional dimensions of green HRM. This study is exclusively focused on the country of Bangladesh. Therefore, it is advisable to replicate the research in different countries in order to examine potential variations in the outcomes. Additional variables that can be considered in relation to an organization’s performance include factors such as green involvement, green planning for human resources, and green performance management, among others.

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Publication History

Submitted: April 8, 2023

Accepted: April 20, 2023

Published: May 01, 2023

Identification

D-0056

Citation

Md Abdullah Jantan and Abdullah Al Mamun (2023). Impact of green human resource management on the sustainable performance of the organization. Dinkum Journal of Economics and Managerial Innovations, 2(06):327-339.

Copyright

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