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Green HRM and OCBE in the Banking Sector: An Empirical View

Article  in  International Journal of Psychosocial Rehabilitation · November 2020

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 Green HRM and OCBE in the Banking Sector: An Empirical
View
Habil Slade Ogalo**
Arab Open University, Bahrain
[email protected]
Seerat Fatima
Institute of Management Sciences Bahauddin Zakariya University Multan, Pakistan
[email protected]
Amna Hasnain
Institute of Management Sciences Bahauddin Zakariya University Multan, Pakistan
[email protected]
**Corresponding Author
Abstract:
The aim of the present study was to examine the relationship between green HRM
and Organizational citizenship behavior to environment (OCBE). The study tested the
impact of green recruitment, green training and green rewards on OCBE in the banking
sector of Bahrain. The bootstrapping results on the hypothesized relationship
confirmed significant relationship between green recruitment and OCBE. Accordingly,
the study also found support for green training and OCBE followed by empirical
significance for green rewards and OCBE relationship simultaneously. The study has
conclusively confirmed the significance of green human resource management
practices towards enhancing organizational citizenship behaviors for environment.
The study has forwarded noteworthy results for implications and future studies.
Keywords: Green hrm, green recruitment, green training, green rewards, OCBE

Introduction:
With growing environmental concerns, businesses are pushed to opt for
greener practices. Therein, international entities have been established to carte
to this element that are following up with the organizations to ensure they are
keeping up with the environmental concerns. A variety of regulations have also
been in place these days pertaining to various organizational activities to push
them to comply with the requirements. (Perez, Amichai‐Hamburger &
Shterental, 2009). Notably, organizations that have managed to work
effectively in this regard have managed to reap many benefits including
enhancing their citizenship outlook in the society (Gorman & Chavez Reyes,
2018).

However, the issue is still grave and to what length it could be effectively
controlled is still not clear. Businesses to the best of their capability and capacity
may work on elements yet still, many areas are yet to be taken into
consideration in this regard. Parallel to other organizational functions, human
resource management department activities are also been advised to follow
the same path (Graham, 1991). To some scholars, the human resource
department can serve is an initiating force on all such matters through
establishing effective policies and code of conduct that encourages green
practices (Mayrhofer, Gooderham & Brewster, 2019). Though, they ought to
start the process through transforming their practices into green at the first
place.
Keeping this idea beforehand, the current paper has attempted to investigate
how green practices of HR could be of viability and how it can help them to
further their citizenship behavior towards larger environment for more
promising efforts in this direction.

Literature Review:
Organizational Citizenship Behavior:
Organizational citizenship behaviors popularly known as OCB is one of the
salient management concepts these days and has received much empirical
attention over the recent past across organizational behavior domain (Chan &
Lai, 2017). The concept has received much prominence particularly due to the
fact that businesses these days require their employees to put greater efforts
with a more personalized concern for the company. OCB is a behavior that goes
beyond the agreed job duties and/or job specification (Podsakoff, McKenzie &
Podsakoff, 2018). Such a behavior is generally not rewarded and not assigned
formally but outlines a greater deal of individual focus, belongingness and
concern towards the business (Ng, Lam & Feldman, 2016). Individuals
showcasing citizenship behavior express civic virtue, courtesy towards others
and company matters, sportsmanship, conscientiousness and altruism (Organ,
1988).

Organizational Citizenship Behavior Environmental:

Organizational citizenship behavior environmental caters to matters pertaining
looking at behaviors that cultivate eco-friendly behaviors by making healthier
impact on the environment (Luu, 2017). Organizations who express citizenship
behavior can strive for expressing more enriched behavior in this regard that
goes beyond organizational boundaries (Chang, Chen, Luan & Chen, 2019).
Organizations expressing OCBE produce more objective work which strives for
increasing eco-friendly initiatives in the society, express eco-engagement and
taking eco-helping efforts. These pro-environmental behaviors help businesses
to make enhance their impact on the societal prospects that are vital for the
place of operation thus, boosting environmental citizenship behavior. In
addition, OCBE energizes individuals to feel passion for unrewarded work
outside the workplace and/or put efforts towards an entity that will have more
positive impact on the environment (Boiral & Paillé, 2012). Research studies
have worked on several antecedents of OCBE, with particularized influence
from green practices including green HRM (Dutta, 2012).
Green HRM:
HRM has been long underlined as a notable resource prospects fro businesses
for enhance individual (Ahmed, Kura, Umrani & Pahi, 2019) and organizational
outcomes (Wood, 2018).
Scholars have provided various explanations to the concept of green HRM. In
the views of Renwick et al. (2008) the incorporation of environmental
management concerns in the human resource management is known as green
HRM. Accordingly, Nagendra and Kansal (2014) asserted that green HRM refers
to transforming of personnel practices to suit the ecological preferences of the
society. The concept of green HRM gives a completely new outlook to the
existing business practices related to employees as the way how things are
perceived and performed changes dramatically. Henceforth, green HRM can
said to be different from conventional HRM (Ahmed, AlZgool & Shah, 2019).

Green Recruitment:
Green Recruitment is one of the most crucial elements for a business to
showcase its green focus and emphasis. Green practices in recruitment caters
to looking into deploying green practices and approaches in attracting
employees and secondly, opting for candidates who are enthusiasm for green
practices. Organizations today hire and attract talented individuals through
projecting green practices and green aspects of HR (Guerci, Montanari,
Scapolan & Epifanio, 2016). Therein, firms with such a mindset prefer to hire
employees who have an environment friendly approach in doing things at work
and appreciate organizations efforts towards harnessing green elements in the
business. Typically, such firms also prefer to hire employees who showcase a
green mindset and environment friendly approach towards work and other job
prospects. Notably, there has been many evidences suggesting the promising
role of green recruitment for instance, recent study by Ahmed, AlZgool & Shah
(2019) indicated towards the positive impact of green recruitment on
employees’ behaviors and outcomes (engagement) thus resulting in boosting
environment wide positive impact. Accordingly, Silvester, Sarip & Hassan (2019)
confirmed significant relationship between green recruitment and
organizational citizenship behavior from the environmental prospect. Thus,
these evidences encouraged to test the following hypothesis:
H1: there will be a significant positive relationship between green recruitment
and OCBE.

Green Training:
Training and employee development is one of the most promising features for
businesses to ensure they elevate employee skills and competencies to the
level whereby, they could facilitate in achieving organizational goals
(Mozammel, 2019). Here, green HR policies would look into establishing
training programs that are following green prospects and advocate green
practices amongst employees. HR department with green focus have been
noticed developing green training programs to enhance skills of their
employees in dealing with issues and challenges arising from green prospects
(Pinzone, Guerci, Lettieri & Huisingh, 2019). Green training activities energize
individuals to learn on doing things the green way. This on the notable side also
showcases a good image of the organization in the society thus outlining it as a
socially responsible entity. (Silvester, Sarip & Hassan (2019). Scholars have also
outlined that green training boosts pro-environmental behaviors across the
organization and portrays a better socially responsible image in the operating
environment. Hence, it was asserted that green training will positively enhance
OCBE.
H2: There will be a significant positive relationship between green training and
OCBE.
Green Rewards:
There is a great deal of scholarly understanding on the factors (recruitment and
training) discussed above. However, to what length, businesses will be able to
enhance through other HR activities is less known. For example, some of the
organizations offer recognition to their employee on practicing green
(Mandago, 2018). Accordingly, some offer tangible rewards to employees on
going green (Dumont, Shen & Deng, 2017). When organizations offer rewards
to employees practicing green behaviors, it elevates the green culture across
the business and results significantly in enhancing the social image in the
society. In addition, it also encourages employees to showcase a promising
image in the society whilst spreading appositive word of mouth (Green,
Mohammed, Patel & Solver-Cummons, 2017). Conclusively, these assertions
suggest that businesses can make a considerable impact on harnessing their
citizenship behaviors through offering rewards to employees against
showcasing green behaviors and achievements.
H3: There will be a significant positive relationship between green rewards and
OCBE.
Sampling:
Four major banks in Bahrain were selected for the present study. The banks
were chosen based on initial information obtained pertaining to there
implementation of Green HR practices (green recruitment, training and
rewards) in the company over the past three years. Therein, all the employees
hired in the past years were taken into consideration for the present study. A
total of 112 candidates were finalized out of which 105 responded.
Conclusively, 101 were taken further for final assessment of the relationships.

Methodology:
Structural equation modelling using Smart PLS 2.0 has been deployed to assess
the hypothesized relationships (Ringle et al., 2005). Therein, the paper followed
the two-stage process whereby, the first stage caters to measurement of the
model through testing reliability, validity of the model to confirm its suitability
for assessment. Once the assessment was obtained, the study moved to stage
two whereby, the significance of the hypothesized relationships was examined.
Assessment of Measurement Model:
The measurement model assessment works to check the ensure the individual
item reliability, convergent validity and reliability and discriminant validity.
table 1 below shows that individual item loadings were assessed for each
construct whereby, the study reported all loading achieving the required
threshold of 0.50 as per the recommendations of Hulland (1999). In parallel,
the study also examined the AVE scores which also turned to be meeting the
minimum threshold requirement of 0.50 as per Fornell and Larcker (1981). The
Cronbach alpha coefficients were also examined and were found to be meeting
the considerable mark of 0.70 as per Bagozzi and Yi (1988). Thus, the model
expressed significant level of reliability and validity.
Table 1: Loadings, AVE and Alpha Coefficients

CONSTRUCT LOADINGS AVE CRONBACH APLHA R2

GTRAINING 0.599210 0.832427
GT1 0.781888
GT2 0.730626
GT3 0.792077
GT4 0.806243
GT5 0.757280
GRECRUITMENT 0.676128 0.903696
GR1 0.767175
GR2 0.818713
GR3 0.862668
GR4 0.840387
GR5 0.851875
GR6 0.788531
OCBE 0.792153 0.912317 0.579394
OC1 0.902214
OC2 0.908812
OC3 0.894422
OC4 0.853633
GREWARD 0.642678 0.888013
GRE1 0.778619
GRE2 0.833297
GRE3 0.850760
GRE4 0.836186
GRE5 0.794944

GRE7 0.707463

Table 2: Discriminant Validity

GREWARD GTRAIN OCBE

CONSTRUCT GRECRT

GRECRT 0.82227003

GREWARD 0.775218 0.801672

GTRAIN 0.510057 0.544364 0.77408656

OCBE 0.635067 0.678892 0.640129 0.89002977
Note: BOLD values are Square Root Values

Accordingly, the paper, following the recommendations of Fornell and Larcker

(1981) tested the discriminant validity. Table 2 above shows that the square
root of the AVE scores have resulted higher against the values in the cross table.
Structural Model:
Upon the successful test of the measurement model, the present study
proceeded further with structural model examination whereby, significance of
the hypothesized relationships was tested. Through running bootstrapping
approach with 5000 samples, the study found significant relationship between
green recruitment and OCBE thus confirming hypothesis 1. Accordingly, the
results also found significant relationship between green training and
organizational citizenship behavior environmental thus confirming hypothesis
2. Accordingly, the research also reported significant relationship between
green reward and OCBE henceforth, the study found significant relationship
between all predictor and outcomes variables.
Table 3: Hypothesis Testing

HYPOTHESIS BETA STD (STERR) T VALUE

GRECRT -> OCBE 0.193084 0.06127 3.151338

GTRAIN -> OCBE 0.360344 0.043387 8.30529

GREWARD ->
-0.33305 0.063286 5.262614
OCBE

Figure 1: Structural Model

Discussion:
The aim of the present study was to assess the relationship between green HRM
practices and OCBE. The structural equation modelling results of the study
reported significant relationship between green recruitment and OCBE. The
results are in line with the scholarly assertions of Silvester, Sarip and Hassan
(2019) suggesting that when organizations follow green practices pertaining to
recruitment and attracting candidates it makes a healthy impact on the
environment by minimizing the use of certain resources thus enhancing an
organization`s citizenship behavior towards the environment. In parallel, when
organizations offer green training it enhances individual as well as
organizational citizenship role and contribution towards the larger society. This
statement could be supported from the empirical results of Teixeira et al.
(2016) who confirmed the significance of green training in boosting
organizations positive influences towards the environment. Generally training
resources have been termed as highly significant for businesses to enhance
their behaviors and outcomes in many ways such as engagement (Majid,
Ahmed & Zin, 2017). Accordingly, when organizations offer green reward
whereby, they are rewarded for green practices and efforts, it showcases a
positive encouragement and improves contribution in the shape of enhance
organizational citizenship behavior of employees towards the environment at
large.
The study therefore forwards several implications for practice. The study offer
insight to top management to understand the role of green practices in general
and of green HR in particular on how it can enhance several noteworthy
employee behaviors and outcomes. Organizations therefore should strive to
transform conventional HR unit into green which would not only bring
efficiency in terms of resource utilization but will also yield great citizenship
outcomes which would have strategic benefits for businesses.

Conclusion:
The paper hence confirmed the significance of green HRM towards boosting
organizational citizenship behavior towards the environment. The study
therefore utilized the assertions of past scholars and reported empirical
strength pertaining to the role of green recruitment, green training and green
rewards towards citizenship behaviors for the greater organizational external
environment.
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