An-Najah National University Faculty of Graduate Studies Assessing Green Human Resources Management Practices in West Bank: An Exploratory Study By Hiba Awad Masri Supervisor Dr. Ayham Jaaron This Thesis is Submitted in Partial Fulfillment of the Requirements for the Degree of Master of Engineering Management, Faculty of Graduate Studies, An-Najah National University, Nablus, Palestine. 2016 iii Dedication To my father Eng. Awad Masri who taught me to never stop learning and be always ambitious... may his soul rest in peace. To my beloved mother, Hiyam Al-Hwaiti, the one who loved me unconditionally and never gave up in my abilities even when I doubt myself. Thank you for everything. iv Acknowledgment 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 this journey and proceed successfully. This thesis would never have seen the sun without the guidance of my committee members, and without the full support and help from friends and family. So, first of all, I would like to express my deepest gratitude and sincere thanks to my supervisor, Dr. Ayham Jaaron, for his excellent guidance, support, caring, patience, encouragement, motivation, valuable advices and assistance throughout this research that have resulted in the completion of this thesis. I owe him heartfelt thanks for his time and effort that assisted me throughout my study. I would like also to express my appreciation to all of the academic staff of the Engineering Management program at An-Najah National University for helping me in overcoming program courses successfully; and guiding me to develop my background in subjects that are related to this research. I would also like to thank committee members for their time and effort in reviewing this work. Many thanks to my mother, sisters, and brothers for supporting me and encouraging me with their best wishes. v My dear colleagues, thank you for the friendly and many unforgettable memories inside the University, especially Nour Samaro for giving me the necessary support and great friendship that enrich my life and make me proud of being your friend. I cannot list all the names here, but you are always in my heart. Finally, thanks to all study participants who provided me with valuable information and enrich this research with their experience. vii List of Abbreviations HRM Human Resources Management EM Environmental Management GHRM Green Human Resources Management EP Environmental Performance EMS Environmental Management System WB West Bank OECD Organization for Economic Co-operation and Development ISO International Organization for Standardization ET Environmental training ANOVA Analysis of Variance PMS Performance Management System EMIS Environmental Management Information Systems MENA Middle East and North Africa MEnA Ministry of Environmental Affairs PEnA Palestinian Environmental Authority NGOs Non-Governmental Organizations EQA Environment Quality Authority PFI Palestinian Federation of Industries EIA Environmental Impact Assessment OECD Organization for Economic Co-operation and Development viii Table of Content No. Content Page Dedication iii Acknowledgment iv Declaration vi List of Abbreviations vii Table of Content viii List of Tables xi List of Figures xii Abstract xiii Chapter One: Introduction 1 1.1 Chapter Overview 2 1.2 Introduction 2 1.3 The Research Problem 3 1.4 Aim and Objectives of the Research 5 1.5 Research Questions and Hypotheses 6 1.6 Significance of the study 8 1.7 Thesis Structure 9 Chapter Two: Literature Review 11 2.1 Chapter Overview 12 2.2 Background 12 2.3 Green Human Resources Management (GHRM) 15 2.3.1 The role of HRM in greening the firm 20 2.3.2 Greening the firm via HRM practices 25 2.3.2.1 Greening the firm via recruitment and selection practices 30 2.3.2.2 Greening the firm via training 34 2.3.2.3 Greening the firm via Performance Management System 39 2.3.2.4 Greening the firm via Pay and Reward System 41 2.3.2.5 Greening the firm via supportive organizational culture 43 2.3.2.6 Greening the firm via Employee empowerment and participation 47 2.4 Drivers, barriers and excepted benefits of GHRM 50 2.4.1 Drivers 50 2.4.2 Barriers 52 2.4.3 Excepted benefits of GHRM practices 54 2.5 Environmental management in Palestine 55 2.6 Food, chemical and Pharmaceutical Industries in Palestine 58 ix No. Content Page 2.7 Human Resource Management in Palestine 62 2.8 Research Hypotheses 63 Chapter Three: Research Methodology 66 3.1 Chapter Scope 67 3.2 Research Type 67 3.3 Research Approach 68 3.4 Research Methodology Flow Chart 69 3.5 Research population and sample size 71 3.6 Data collection 72 3.6.1 Semi-structured interview 72 3.6.2 Questionnaire 74 3.6.2.1 Questionnaire Design 74 3.6.2.2 Questionnaire Pilot study 77 3.6.2.3 Questionnaire Reliability 78 3.6.2.4 Questionnaire Validity 79 3.7 Data analysis approach 79 3.7.1 Interview analysis 80 3.7.2 Questionnaire analysis 81 Chapter Four: Data analysis and results 83 4.1 Chapter overview 84 4.2 Interview analysis 84 4.2.1 Theme 1: Environmental Practices 88 4.2.2 Theme 2: Environmental Management Practices 88 4.2.3 Theme 3: HRM Importance 89 4.2.4 Theme 4: HRM Involvement in EM 89 4.2.5 Theme 5: Challenges 90 4.2.6 Theme 6: Success factors 91 4.3 Questionnaire analysis 91 4.3.1 Study population 92 4.3.1.1 Gender 93 4.3.1.2 Number of employees in the organization 93 4.3.1.3 Location 95 4.3.1.4 Industrial sector 95 4.3.1.5 Respondent’s position in the organization 96 4.3.1.6 Respondent’s educational level 96 4.3.1.7 Respondent’s experience 97 4.3.1.8 Environmental management 97 4.3.1.9 HRM involvement in EM 98 4.3.2 GHRM practices assessment 99 4.3.3 Drivers, Barriers, Excepted benefits of GHRM 101 x No. Content Page 4.3.3.1 Drivers of GHRM 101 4.3.3.2 Barriers of GHRM 102 4.3.3.3 Benefits of GHRM 103 4.3.4 Environmental performance 104 4.4 Hypothesis testing 106 4.4.1 Testing Correlation between GHRM Practices and environmental performance 108 4.4.2 Testing Correlation among the GHRM Practices 109 4.5 Bivariate Analysis 113 4.5.1 Statistical differences of GHRM practices 113 4.5.2 Drivers, Barriers, Benefits of GHRM 117 4.5.3 Environmental performance 118 Chapter Five: Discussion and model development 120 5.1 Chapter overview 121 5.2 Discussion 121 5.2.1 Discussion of GHRM practices 122 5.2.2 Discussion of drivers, barriers, and benefits of GHRM 128 5.2.3 Hypothesis testing discussion 132 5.3 Model development 137 Chapter Six: Conclusions & Recommendations 142 6.1 Chapter overview 143 6.2 Conclusions 143 6.3 Research contribution 145 6.4 Recommendations 146 6.5 Limitations 147 6.6 Future research 148 References 150 Appendixes 170 @ABCDب ا xi List of Tables Table Table Page Table (2.1) Studies on GHRM 28 Table (2.2) Food, chemical, and pharma industries effect on natural resources 57 Table (2.3) General information about selected sectors 59 Table (3.1) Distribution of participant by industrial sector 71 Table (4.1) Characteristics of the companies and role of the interviewee 75 Table (4.2 Summary of identified codes, basic themes, and central themes 87 Table (4.3) Cronbach’s Alpha 92 Table (4.4) Scaling Degrees 99 Table (4.5) Application Degree for Best GHRM Practices 100 Table (4.6) Drivers of GHRM 102 Table (4.7) Barriers of GHRM 103 Table (4.8) Benefits of GHRM 104 Table (4.9) Environmental performance 105 Table (4.10) Correlation coefficient between GHRM practices and EM 109 Table (4.11) Correlation coefficient among GHRM practices 111 Table (4.11) Summarized ANOVA Test for differences among GHRM practices according to (No. of employees, EMS, Industrial Sector) 116 Table (4.12) Summarized ANOVA Test for differences among drivers, barriers and benefits of GHRM according to (Position of respondent, Industrial Sector) 118 Table (4.13) Summarized ANOVA Test for differences in the environmental performance according to Industrial Sector 118 xii List of Figures No. Figure Page Figure (1.1) Aim, Objectives & Expected Outcomes of the Research 6 Figure (3.1) Research Methodology Flow Chart 70 Figure (4.1) Gender Distribution 93 Figure (4.2) Distribution of companies by Number of Employees 93 Figure (4.3) Distribution of companies by size 94 Figure (4.4) Company location 95 Figure (4.5) Sample distribution percentage by industrial sector 96 Figure (4.6) Respondent position 96 Figure (4.7) Respondent's educational degree 97 Figure (4.8) Respondents experience 97 Figure (4.9) Environmental managemen 98 Figure (4.10) HRM involvement in EM 99 Figure (4.11) Hypothesis testing 107 Figure (4.12) Hypothesis Testing 112 Figure (5.1) Hypothesis status 136 Figure (5.2) Conceptual model for GHRM best practices 138 xiii Assessing Green Human Resources Management Practices in West Bank: An Exploratory Study By Hiba Awad Masri Supervisor Dr. Ayham Jaaron Abstract In the last few years, global concerns have increased regarding the environmental issues, especially after the consolidation of the industrial revolution which caused an increment in degradation of the environment. These concerns generated more pressure and inculcated business and industry to develop and use green management by adopting environmentally-friendly practices and products. Environmental Management (EM) has been included in many departments such as marketing, supply chain, finance and others. Recently, Human Resource Management (HRM) joined the green movement. The integration of EM into HRM practices is known as Green Human Resource Management (GHRM) which aims to help organizations improve Environmental Performance (EP) through increasing employees' involvement and commitment towards environment. The industrial sector is considered to be a source of various forms of environmental pollution in Palestine which needs to be assessed, monitored and rectified. Therefore, it should involve all employees to achieve EM goals. This research aims to explore and assess the extent of implementing GHRM practices in Palestinian manufacturing companies from three industrial sectors (food, Chemical and pharmaceutical industries) in the xiv West Bank (WB). An exploratory research inquiry using structured questionnaires with semi-structured interviews is used. This research discusses the current trends of GHRM practices in these companies based on findings of 17 semi-structured interviews and questionnaires submitted to 110 companies. The result of this research indicates that HRM practices are not used to a great extent to encourage employees to become more pro- environmental. The total implementation of GHRM is 54.9% which is considered as a moderate level. It has been found that the preferable practice which increased employees’ commitment and awareness toward the environment is the “Green management of organizational culture”. On the other hand, the least used practices were “Green Reward and Compensation”. This study discusses the role of GHRM in creating a green culture and achieving EM goals which will improve EP. The results of hypotheses testing show that there is a statistically significant relationship between GHRM practices and EP. Furthermore, it devises a model that represents the best practices of GHRM to improve EP. In addition, this research identifies the variables that could affect GHRM implementation by supporting or hindering and the expected benefits of GHRM implementation from the viewpoint of the targeted companies. The results of the descriptive analysis show that the main driver of GHRM is “Environmental Considerations”, the main barrier of GHRM is “Cost of implementing GHRM programs” and the main expected benefit xv of GHRM is “promotes social responsibility toward environment among employees”. Finally, the findings of this research are expected to provide useful information for future research directions. 1 Chapter One Introduction 2 Chapter One Introduction 1.1 Chapter Overview This chapter provides a general overview of this research. It includes a brief introduction, research problem, aims and objectives of the research, research questions and hypotheses, and finally thesis structure. 1.2 Introduction The increased concern for environmental issues over the last two to three decades created new regulations, policies and an intangible culture. This required an increased organizational focus on their environmental impact, considered both from the perspective of its interaction with the firm’s financial and social growth and in terms of its stand-alone virtues. Human Resources Management (HRM) is one of the main functions of any organization; it plays a vital part in shaping organizational culture, structure and strategy and policy development. Lado and Wilson (1994) defined the HRM system as “a set of distinct but interrelated activities, functions, and process that are directed at attracting, developing, and maintaining (or disposing of) a firm’s human resources”. Thus, HR is properly seen to play a key role in Environmental Management (EM) in the organization. Many Researchers directed their attention toward the relation between HRM and EM and have emphasized the importance of individual green initiatives in the workplace. Based on the literature, it can be expected that this relation can be approached as Green Human Resources 3 Management (GHRM) to help organizations to improve Environmental Performance (EP) and achieve sustainability. Mampra (2013) illustrated GHRM by using HRM policies to stimulate the sustainable use of resources within the organization and generate green culture through outlining strategies and rules to increase employees' awareness and commitment toward environment. HRM participates in order to reinforce and spread sustainable business activities which consecutively will boost up employee morale and satisfaction by working in an environmentally-friendly manner (Aggarwal and Sharma, 2014). GHRM practices can be seen during the whole of entry-to-exit processes in HRM (from recruitment to exit) (Jackson et al., 2011). Although there is an increasing extent of the substantial literature about GHRM, there is still uncertainty about how an effective implementation of GHRM can help the organization to achieve green corporate culture and increase EP. Therefore, this research endeavor is to develop a model which covers the GHRM best practices for the West Bank (WB) manufacturing companies, and to examine and assess the nature and extent of GHRM initiatives undertaken for innovating and improving the EP. 1.3 The Research Problem "Industry is playing an important role in the economic and social wellbeing of the Palestinian society"(USAID & PFI, 2009). The industrial 4 sector is considered to be a source of various forms of environmental pollution in Palestine which needs to be assessed, monitored and rectified (Environmental Quality Authority, 2010). Because of the important role and effect of industrial sector in Palestinian society, there is an increasing need of adopting different environmentally-friendly practices. Based on the results of the estimation done by Environment Quality Authority (EQA) & PlanBleu (2015) for emissions from 600 industries across Palestine to the air, water and land it has been found that there is significant uncertainty in these estimates, primarily, due to the fact that there has been no source and/or ambient monitoring of industries in any of the three emission areas. Therefore, a meeting with a committee from EQA was conducted to decide which industries to target in this research. It was recommended to cover three industries (chemical, food and pharmaceuticals industries) due to their direct effect on human health and environment. Therefore, the targeted sample will cover companies from these three industries Applying green practices is not a responsibility of specific departments. In fact, all organization’s functions are equally responsible to keep their organization's environment green. Managers have to involve their employees in the environmental practices. Therefore, it was questioned to what extent Palestinian managers involve their employees in achieving EM goals. This research will provide a clear guide to help managers in applying and developing GHRM in order to improve EP. 5 1.4 Aim and Objectives of the Research The main of this research is to assess GHRM best practices in manufacturing companies from 3 industrial sectors (Food, chemical and pharma industries) in West Bank. This will be done through achieving two objectives. The first one, will explore to what extent Palestinian manufacturing companies are using GHRM practices to increase employees’ commitment and awareness to environment, and show what the best GHRM practices to enhance EP are. The second, will identify the main variables/factors that are enhancing the implementation of GHRM and what obstacles this movement is facing in Palestinian manufacturing organizations and the expected benefits of GHRM practices from the viewpoint of these companies. The expected outcome of this research is GHRM best practices model which is intended to give an explanation about the implementation of best practices of GHRM, in addition to help firms in understanding how they can improve their EP through HRM functions. The primary aim, the two main objectives and the expected outcomes of this thesis are illustrated in Figure (1-1). Figure (1.1): Aim, Objectives & Expected Outcomes of the Research 1.5 Research Questions and Hypotheses To achieve the the following hypothesis and questions have been used: � Achieving the first objective: to explore and determine the GHRM best practices. The research is based on the hypothesis that integration of HRM with environmental activities such as dedicated environmental training programs or the use of EP indicators can overall effectiveness of these activities and hence the EP of a firm (Daily and Huang, Renwick et al., increase employees' awareness (Sharmin, 2015). The 6 : Aim, Objectives & Expected Outcomes of the Research Research Questions and Hypotheses To achieve the research’s aim of assessing GHRM practices in WB, the following hypothesis and questions have been used: Achieving the first objective: to explore and determine the GHRM best practices. The research is based on the hypothesis that integration of HRM with environmental activities such as dedicated environmental training programs or the use of EP indicators can help to improve the overall effectiveness of these activities and hence the EP of a firm (Daily and Huang, 2001; Jabbour and Santos, 2008b; Daily et al., Renwick et al., 2008). This integration helps the organization to increase employees' awareness and commitment toward ). The main hypothesis of this research is: : Aim, Objectives & Expected Outcomes of the Research aim of assessing GHRM practices in WB, Achieving the first objective: to explore and determine the GHRM best practices. The research is based on the hypothesis that integration of HRM with environmental activities such as dedicated environmental help to improve the overall effectiveness of these activities and hence the EP of a firm b; Daily et al., 2007; ). This integration helps the organization to and commitment toward environment main hypothesis of this research is: 7 “GHRM practices have a positive impact on EP in Palestinian manufacturing organizations.” Based on the assumption that using GHRM will improve EP, the following research sub-hypotheses have been used: o H1: Green Recruitment and selection affects EP positively in Palestinian manufacturing organizations. o H2: Green Training and development affects EP positively in Palestinian manufacturing organizations. o H3: Green Performance management and appraisal affects EP positively in Palestinian manufacturing organizations. o H4: Green Reward and compensation affects EP positively in Palestinian manufacturing organizations. o H5: Green Employee empowerment and participation affects EP positively in Palestinian manufacturing organizations. o H6: Green Management of organizational culture affects EP positively in Palestinian manufacturing organizations. o H7: The components of GHRM practices are interrelated and a strong relation is available between them in Palestinian manufacturing organizations. 8 � Achieving the second objective: to identify variables that help or stop GHRM implementation and the expected benefits of GHRM practices from the viewpoint of these companies. The following questions were used: 1. What are the GHRM policy barriers/obstacles in Palestine? 2. What are the GHRM drivers in Palestine? 3. What are the expected impacts of GHRM practices in Palestine? 1.6 Significance of the study This study is shedding light on a new concept that has not been searched in details in developing countries, especially in Palestine. This study reviews the current situation of the GHRM practices and provides solutions for the companies who are interested in this area. These solutions will be presented by a conceptual model that will provide a blueprint for these companies to adopt GHRM practices. This study, in fact, will better define which HRM practices or cluster of HRM practices could be more correlated with EP. So, by using this study, companies would understand which actions to adopt and implement first practices that have more impact on dependent variable EP. Eventually, for firms who have already implemented GHRM practices, this study will be a guide in order to improve their sustainability purposes. At the end of the research there will be a few recommendations for future studies; it opens up new researches avenues regarding GHRM and 9 green management in WB that can be applied. Additionally, GHRM best practices model can be tested for green activities irrespective of organization types and country context. 1.7 Thesis Structure The thesis includes six chapters. The first chapter “Introduction” introduces the thesis subject through a brief background overview. It also encompasses the research problem and the importance to support this research. Also, it clarifies aims and objectives of the research, research questions and hypotheses. The second chapter “Literature Review” introduces a literature review and summarizes studies that addressed the GHRM, and previous studies which support the hypotheses formulation. In addition, a broader view was taken to look into how HRM may help in greening the organization. Also, it discusses the expected drivers, barriers and benefits of GHRM practices. The third chapter “Methodology” presents the methodology that has been followed in this research through discussing data collection process used, the population targeted, sampling process, the instrument development for data collection and the data analysis approach. The fourth chapter “Data Analysis and Result” presents the results and findings which illustrate the analytical results of quantitative and qualitative data and present the hypotheses testing results. 10 The fifth chapter “Discussion and model development” discusses the results illustrated in chapter four and presents the model development. Finally, the sixth chapter “Conclusion and Recommendation” gives brief conclusions on hypotheses' results with a set of recommendations and future research suggestions. 11 Chapter Two Literature Review 12 Chapter Two Literature Review 2.1 Chapter Overview This chapter will present a revision and analysis of empirical and theoretical data found in the literature to demonstrate the importance that HRM practices have in the EM field, and the relationship between them. Then a brief description of GHRM practices that can be implemented by companies is to be made. Finally, research hypotheses will be designed at the end of the chapter based on the literature. 2.2 Background Recently both developed and developing countries became more concerned about the importance of the environmental issues and sustainable development (Sharmin, 2015). Especially after the consolidation of the industrial revolution; the expansion of the levels of production and consumption in the world has been intensified causing an increment in degradation of the environment (Jabbour and Santos, 2008a). The increased awareness for environment has paved the way for establishing green concepts into several concerns such as green cities, green food, green education, green ethics and philosophy (Firdaus and Udin, 2014). The green movement inculcated business and industry to develop and use green management by adopting environmental friendly practices and products (Prasad, 2013). Haden et al. (2009) clarified green management by the process of using innovation organization-wide to 13 achieve sustainability by continuous learning and development and embracing integrating environmental goals and strategies with the goals and strategies of the organization. In the past, economic and financial status of an organization was vital for organization success and progress (Kapil, 2015a). But now shareholders are expecting companies to focus on minimization of ecological footprints and increased attention to social and environmental aspects (Sudin, 2011). In the corporate world today the concept of sustainable development has become a major focus and interest (Venkatesh et al., 2014). The main influential idea was defined by The World Commission on Environment and Development (1987) as "development which meets the needs of the present without compromising the ability of future generations to meet their own needs". In the environmental literature, the concept of ecologically sustainable development can be defined as the need for balance between industrial growth for wealth creation and safeguarding the natural environment so that the future generations may thrive (Daily and Huang, 2001). It became clear that sustainability in the organization and its Environmental Performance (EP) are critical factors for organization's survival and competitiveness (Lee, 2009). As a result, an effective implementation of EM has become vital for the company's’ survival and achieving Sustainability (Preston, 2001; Hussain, 2013); which has grown the need to adopt a good Environmental Management System (EMS). 14 Since the 1990s, EMSs have stood out as one of the most effective tools to achieve sustainable development (Chan, 2011) through integrating aspects of EM into corporate decision-making (Wagner,2014). Wagner (2013) defined EMS as a set of common ‘Green’ practices aimed at improving EP. The most popular environmental-related standard is the ISO 14001 standard. However, EMS could be insufficient to solve the complexity of environmental issues, based on the fact its effectiveness largely depends on informal voluntary initiatives that are difficult to control (Boiral, 2009; Daily et al., 2009); and if organization did not consider a basic process where employees and other stakeholders accept change it may fail in implementing EMS (Ronnenberg et al., 2011). Both Daily and Huang (2001) and Renwick et al. (2012) agreed on the idea that HRM is probably essential to successful EMS implementation. It could only be effectively implemented if the companies have the right people with the right skills and competencies (Daily and Huang 2001). Yet the issue of how to achieve sustainability through the green management movement in an individual organization or entire society is still debatable and unclear. Therefore, research to help business to enhance sustainability through green management initiatives is essential (Prathima and Misra, 2013; Sudin, 2011). Management scholars from areas as diverse as accounting, marketing, and supply-chain management are now analyzing how managerial practices in these areas can contribute to EM goals (Jackson et al., 2011), but HRM has not been explored sufficient yet as an aspect of EM (Renwick et al., 2012). Although Müller-Camen et al. (2012) 15 and Renwick et al. (2012) called for more researches into the linkage between HRM and EM, to date, there is few empirical works that have clearly addressed the extent to which strategic HRM stimulates employees’ friendly environmental behaviors, enabling firms to improve their EP (Paillé et al.,2013b). Renwick et al. (2012) proposed that GHRM has a considerable potential in management research area, but that academic research is rather lagging behind in practice. This indicates there is an imbalance between practitioner and academic publications. Jackson et al. (2011) called for more research on GHRM in relation to environmental sustainability in order to illuminate the role of HRM activities in supporting and driving EM initiatives. As a response to (Renwick et al., 2012; Jabbour and Santos, 2008a; Jackson et al., 2011) calls to integrate EM and HRM as a subject of research, this research aims to contribute in suggesting GHRM best practices for manufacturing companies in WB to improve their EP. 2.3 Green Human Resources Management (GHRM) Many researchers contend that the availability and ability of HRM determine the effectiveness and success in any management innovation and strategic tools (Boselie et al., 2001; Paauwe and Boselie, 2003). HRM is one of the most effective parts of management because it deals with the most valuable assets of an organization which is human resources. Lado 16 and Wilson (1994) defined the HRM system as “a set of distinct but interrelated activities, functions, and process that are directed at attracting, developing, and maintaining (or disposing of) a firm’s human resources.” HRM practices are executed in line with the culture and business strategy of the organization (Boselie, 2001). Regarding the relation between human and environment, in general, human activity causes environmental issues; therefore, it should be worked on by changing human behavior (Ones and Dilchert, 2012), using suitable HRM practices to stimulate employees (Paille et al, 2013b). Research studies about greening the organization through the relation between HRM and EM started in the 1990s, perhaps originated in 1996 from the contribution by Wehrmeyer (1996) who edited a book titled “Greening people: human resources and environmental management”. With increasing numbers of these studies, organizations needs of HRM practices support to implement greening became more obvious (Daily and Huang, 2001; Govindarajulu and Daily, 2004). These needs were strengthened by studies discussed the positive effects of HRM to firms' performance (Schuler and Jackson, 2014; Renwick et al., 2012; Paauwe and Boselie, 2005). Since that time, a series of studies have appeared on this subject. Before 2008 the combination of HRM and EM was nameless. In the work of Renwick et al. (2008), this combination by “Green Human Resource Management” (GHRM) was coined for the first time, and began to incorporate it more systematically into the research agenda of HRM, 17 thus encouraging human resources scholars to include an environmental focus in their studies. In 2011, Jackson et al. organized the first Special Issue on HRM, decisively merging the research areas of human resources and environmental/green management. Since then, studies on HRM have become more common, encouraging new special issues on the subject (Renwick et al., 2012). The notion of GHRM is related to the HRM function as the main driver in an organization to take up the green initiatives (Mandip, 2012). GHRM is an off-shoot of green management philosophy, policies, and practices followed by a firm for EM (Patel, 2014). Sharmin (2015) defines GHRM by using HRM practices with the intention to promote the sustainable use of resources which will reinforce cause of environmental sustainability in general. It encompasses human resource initiatives to advocate sustainable practices and increase employee awareness and commitments on the issues of sustainability. Opatha and Arulrajah (2014) describe GHRM by the process of making employees of the organization green for the benefit of the individual, society, natural environment, and the business by using policies, practices and systems and activities involved in development, implementation and on-going maintenance of a system. It is the side of HRM that is concerned with transforming normal employees into green employees so as to achieve environmental goals of the organization and finally to make a significant contribution to environmental sustainability. 18 Nagendra and Kansal (2014) portrayed GHRM as the ecological aspects of fiscal policies, foreign policies, and industrial policies as well; which will foster eco-friendly initiatives resulting in a cleaner environment, reduction in consumption of paper, high retention rate and proper disposal of wastage. While Yusoff (2015b) sum up the earlier concept of strategic GHRM by CSR activities, work-life balance, E-HRM that could help enhance the sustainability of all stakeholders of organizations which requires consideration of its economic, social, and environmental aspects. However, it should be noted that traditional HRM subsystems are various from GHRM subsystems; where GHRM which has unique characteristics (Fayyazi, 2015). GHRM is essential for the effective greening of organizations (Aragon-Correa et al., 2013; Brío et al., 2008). The emergence of GHRM includes the extent of improving the social (e.g., work-life balance) and economic well-being (e.g., sustain profits) besides awareness towards environmental concern (e.g., reduced wastes). GHRM has actually held and supported the paradigmatic understanding of the concept of ‘triple bottom- line’; that is to say, that GHRM involves practices aligned with the three sustainability pillars–environment, social and economic balance (Yusoff, 2015a). GHRM form part of wider programs of corporate social responsibility (Sathyapriya et al., 2013). The implementation of GHRM is needed to implement the HRM systems that fit the organization's culture and long-term objectives (Sudin, 2011). 19 In fact, environmental sustainability typically begins with the development of a successful vision and strategy; executing the new strategy requires changing work process and behavior through training, talent management and the basis of the basic competencies of HRM (Cohen et al., 2012). Even though many companies are trying to effectively influence and increase employees’ environmental behavior; there is a clear discrepancy between environmental policies and actual behavioral patterns in organizational everyday life which create challenge in the HRM literature. Renwick et al. (2012) have mapped out how the GHRM practice can motivate, engage and increase employee’s involvement in the environmental activities. The concept of environmental sustainability must be comprehended to the talents as they are the prime leader in an organization. Thus, it can be said that through effective implementation of GHRM in talent management it can be connected to business sustainability and bring the benefits to the organization in the long run (Wagner, 2013). It can be assumed that the full potential of GHRM in theory and practice has not yet been realized. Once organizations incorporate the environmental dimension into their dynamics, HRM have a crucial role in stimulating the success of its integration with the EM. However, it is noteworthy that GHRM is still in its early stages and many studies in this area is a theoretical phase (Jabbour, 2013b). 20 2.3.1 The role of HRM in greening the firm Today, “being green” has become a norm (Margaretha and Saragih, 2013); greening is a holistic process aimed at smarter energy usage, low costs, low wastage using sustainable resources or recyclable materials for end results that are products, targets, etc. (Jafri, 2012). A Green Workplace is environmentally sensitive, resource efficient and socially responsible (Sathyapriya et al., 2013). In addition, it incorporates a virtual workplace and green buildings. A Green Workplace could have one or more of the following components: written environmental policy, specific targets for improving EP, publication of environmental reports, EMS, environmental purchasing policy, environmental training and education, fossil fuel use reducing policy and policy of reducing the use of the unsustainable product (Ramus, 2002). Google is leading the way publicizing their environmental record and in its environmental practices (Kaur, 2013). Over the last three decades, organization’s relationship with the environment has been largely defined by environmental regulations. How organizations, primarily in developed countries, respond to the demands of environmental law has determined their relationship with the environment (Aragon-Correa and Sharma, 2003). Past research had developed various classifications for the relationship between business and the natural environment (Jabbour and Santos, 2006; Aragon-Correa and Sharma, 2003; Staffelbach et al., 2012). In general, “corporate strategies for managing the natural environment can be classified along a continuum that ranges from reactive to proactive” (Aragon-Correa and Sharma, 2003). 21 Jabbour and Santos (2006) classified environmental strategies into three types: (1) Functional specialization of environmental dimension (or reactive stage); occurs when the area of EM created is strongly linked to the need of meeting legislative demands and with an isolated position within an organization; (2) Internal integration of environmental dimension (or preventive stage); occurs when the organizational areas’ involvement in EM increases; however, the environmental dimension is not considered systematically strategic; (3) External integration of the environmental variable (or proactive stage); occurs when all the areas of a company are designed to explore competitive advantages systematically by using principles and tools of EM. The evolution of EM throughout these stages depends on the contributions of HRM (Ferna´ndez et al., 2003). Obviously, proactive stage requires a huge amount of effort for training and restructuring the employees through HRM function involvement, since the company aims for a better and deeper understanding of the environmental issues. Staffelbach et al. (2012) described the HR functions roles that can support the organization greening; (1) Strategic partner who understands the business model and gather the relevant stakeholders (including 22 employees, customers, shareholders, and society) together and encourage the dialogue between them, also shares with the managers’ strategies, the value of human resources and the consequences of managing people effectively. (2) Innovator who enables the organization to develop the learning culture, guiding and directing people and does not just copy what others are doing and contributes special knowledge on environmental aspects to the initiative; (3) Collaborator who brings specific competencies of each function together to make a win-win situation understands how to build win-win situations, cooperates and supports and works task-oriented across internal and external organizational constraints. Finally, (4) Change Facilitator who manage and supervises the implementation of the initiative and is aware of the need for change and creates favorable conditions in the organization for it, helps leading changes in strategy and energizes others for the desired change. Opatha and Arulrajah (2014) mentioned four roles for an employee to become a green employee; which are: a preservationist, conservationist, non-polluter, and maker. The preservationist is the one who protect the natural environment from harm loss, or negative change and keep it in its original; Conservationist is the one who treat natural environment very carefully and use it at the minimum level in order to let it last as long as possible so that future generations will be able to utilize it. Non-polluter, is the guardian who stops any behaviors and outcomes that could endanger the planet/earth where humans and non-humans are 23 living through preventing from (or minimizing) contaminating the water, air, atmosphere, etc. through unpleasant and poisonous substances and wastes. Maker is the employee who intentionally builds parks and places which have plants, trees, and grass. A Green employee is a nature-lover or an eco-activist (Opatha and Arulrajah, 2014). In the area of environmental affairs, HRM practices can aid in balancing corporate values, financial goals and environmental strategy and; in ensuring that employees implement this balanced strategy consistently across the organization (Cohen et al., 2012). The responsibility of the present generations, HR managers is to create awareness amongst the youngsters and among the people working for the organization about the GHRM (Shaikh, 2012). Through being an advocator; HR managers should initiate the environmental sustainability concept and employee’s involvement in environmental-friendly activities in the organization, and guide line managers in terms of gaining full staff co-operation towards implementing environmental policies which means HR needs to nurture supporters and create networks of problem-solvers willing to act to change the current status quo (Mandip, 2012). It’s important to include greener activities in every step of HRM activities; once it becomes a daily activity then it will be treated as a culture. Similarly, Jabbour and Santos (2008b) also stated that superior EP outcome requires HRM practices that support the whole implementation and maintenance of EMS in the organizations, where supportive HRM 24 practices such as top management support, environmental training, empowerment, and rewards are likely to be critical to the successful implementation of policies and initiatives associated with an EMS (Daily and Huang, 2001; Govindarajulu and Daily, 2004). The development of products with lower environmental impact requires the support of HRM (Govindarajulu and Daily, 2004; Jabbour et al., 2008); many research support the idea that companies which pay attention to the greening of human factors may be more productive, thus gaining a competitive advantage (Jackson and Seo, 2010; Paille et al., 2013b), in contrast with other organization that is not using full range of GHRM will have potential limitation in the effectiveness of total environmental improvement (Renwick et al., 2012). To build a green organization, the organization, and HRM must increase efficiencies in organizational hierarchies, perform more virtualized work or eliminate unnecessary time spent in the office and optimizing the use of company resources, including travel, etc. Also, companies that are supporting greener options include telecommuting, flexible work schedules (Sathyapriya et al., 2013); In GHRM, researchers have asserted the importance through all the functions of HRM ranging from of staffing, job analysis, environmental training and communication, participation, empowerment, recognition and compensation, the performance of EM programs, performance appraisal and use of technology (Paille et al., 2014; Kapil, 2015a; Renwick et al., 2008). 25 Against this backdrop, it can be assumed that GHRM is all about the holistic application of the concept of sustainability to the organization and its workforce. It involves green actions focused on increasing efficiency within processes, reducing and eliminating environmental waste, and revamping HR products, tools, and procedures resulting in greater efficiency and lower costs. The results included: electronic filing, ride sharing, job sharing, teleconferencing and virtual interviews, recycling, telecommuting, online training, and developing more energy-efficient office spaces (Sharmin, 2015). In fact, GHRM promotes various Green processes and practices in different HR functions. Some of the practices concerning Green management in which HR is actively involved have been described above. Specifically, the functional areas where HR can have a green approach and which can have a bearing on acquisition, development and retention of human capital could be the following 2.3.2 Greening the firm via HRM practices GHRM consists of two essential elements: Environmentally-friendly HR practices and the preservation of knowledge capital (Mandip, 2012). In fact, GHRM policies focus on collective and individual capabilities to bring about green behavior. Such policies are aimed at developing an environmental corporate culture (Sharmin, 2015). The green performance, green behaviors, green attitude, and green competencies of human resources can be shaped and reshaped through adaptation of GHRM practices (Arulrajah et al., 2015). GHRM focuses on employees’ 26 environmental behavior in the company, which in turn, could be carried on to consumption pattern in their private life (Muster and Schrader 2011). To implement GHRM in the organization, it is strategic to begin with the policies, procedures and ideas that make up the HR practices in order to assist the achievement of the going green management (Prasad, 2013). Looking at the recent past in the area of GHRM, some research results are particularly relevant. There is a consensus that GHRM is established through the alignment of the HRM practices, with the aims of organizational EM (Jackson and Seo, 2010). Some recent papers illustrate the cross-fertilization between EM and HRM for the achievement of EP. Applying the link between HR practices and firm performance to the realm of EP, Daily and Huang (2001), Ferna´ndez et al., (2003), Madsen and Ulhoi (2001) and Jabbour and Santos (2008) emphasize the association between HR factors such as environmental training, employee empowerment, rewards, teamwork, and support of top management as essential in achieving sustainability and in implementing successful EMS. The table below (Table 2-1) summarizes the HRM practices related to green management and identified in different studies. In this research the term GHRM best practices involves the human/organizational aspects relevant to EM, the following were used in this study: � Green (environmental) recruitment and selection. 27 � Green (environmental) training, to provide the capacity to address EM situations. � Green (environmental) performance evaluation, which measures employee contributions to the advancement of EP. � Green (environmental) reward systems for EP, which value employees who contribute the most to environmental sustainability. � Green (environmental) empowerment, providing employees with the autonomy to make environmental decisions. � Green (environmental) Organizational culture management; support from top management for environmental initiatives. The environmental issue is dealt with as a value of a company’s organizational culture. These more traditional GHRM practices are more tangible and may guarantee that green issues will be considered in organizational routines (Jabbour, 2015). These practices will be discussed in details below to see how companies can transform HRM practices in green ones and their utility in contributing to and supporting the EM. 28 Table (2.1): Studies on GHRM No. Authors Summary 1 Daily and Huang, (2001) The authors identify HR factors such as top management support, environmental training, employee empowerment, teamwork, and rewards systems fundamental for implementing an EMS 2 Ramus (2000) An investigation into companies of 12 countries concluded that an organization’s ability to produce environmental innovation depends on the organizational support and the HRM that employees notice. 3 Ramus (2002) A survey, involving employees from companies of 12 countries, shows the importance of HRM dimensions, such as reward systems, performance evaluation, and organizational culture management, to create environmental innovation. 4 Rothenberg (2003) The main instruments and organizational mechanisms which favor employees’ participation in projects related to the improvement of EP in automobile assembly plants are analyzed. 5 Daily et al.(2007) Authors conclude that the employees did not view environmental training as having a direct impact on EP. However, training was positively related to teamwork. This mediator variable had a positive influence on EP. Thus, environmental training empowered the environmental teams. 6 Brı´o et al. (2007) Authors conclude that the top management’s involvement, the strategic integration of environmental dimension and employees’ motivation and participation have a great influence on companies’ EP. 7 Brío et al. (2008) Authors identified the key factors related to organizational culture and the management of HRM (such as selection, environmental training, teamwork, employee involvement) that drive EP. 8 Jabbour and Santos (2008) Consider HRM may contribute to EM in companies if they: (a) green recruitment and selection (b) green training and green performance evaluation (c) green rewarding for individual and collective EP; (d) stimulate continuous education in EM; (e) treat environmental aspects as values of 29 a corporate culture; and (f) promote interaction between teams in order to deal with environmental problems and strive for continuous improvement of EM activities. 9 Jabbour et al. (2010) State that HRM had a decisive role in the evolution of EM in organizations and that HRM practices, such as performance evaluation and rewards, are critical to achieving more proactive EM. 10 Sudin (2011) Researcher discussed that employees must be motivated, empowered and environmentally aware of greening in order to carry out green management initiatives; using top management support, employee relations, rigorous recruitment, and selection of employees, performance-based appraisal system, the introduction of training programs and reward system to address green movement. Also discussed the positive effects of the types of green intellectual capital on corporate environment citizenship, leading to the competitive advantage of firms. 11 Jackson, et al. (2011) Mention that Green responsibilities can be used by environmentally responsible employers to attract talent that fits and contributes to achieving the organization’s environmental goals, using HRM functions (Recruitment, Performance measurement, Training, development, and learning, Compensation and rewards and Greening the organizational culture) 12 Jabbour, 2011 The manner in which HRM can be greened is often observed and studied in terms of a continuum surpassing all HRM practices – recruitment and selection of talent; compensation and rewards; performance and appraisal; training and development; employment relations and organizational existence 13 Mandip (2012) Discussed in detail how entry-to-exit processes in HRM (from recruitment to exit) translate GHRM policy into practices. 14 Daily et al., (2012) Authors analyzed the influence of environmental empowerment and environmental training (independent variables) on employee-perceived EP 30 (dependent variable). They found that environmental training influenced EP to a greater extent than did environmental empowerment. Environmental teams among the employees were the mediators in this relationship. 15 Dutta (2012) Explains organization can maintain its green objectives all throughout the HRM process of recruiting, hiring, training and compensating, developing and advancing the firm’s human capital. 16 Margaretha and Saragih (2013) There are seven levers to a green culture which are talent development for the greening of the organization, designing of green jobs, top manager following green modeling, information sharing techniques and empowerment, measurement of green performance and green recruitment and retention. The levers ensure bringing in changes in the desired green behavior of employees. 17 Renwick et al., (2012) Find the implementation of rigorous recruitment and selection of employees, performance-based appraisal system, training programs aimed at green management initiatives have a basic importance for fostering environmental innovations and associated with superior EP. 18 Opatha and Arulrajah (2014) Listed the main HR activities that should be focused when going green, namely job analysis, recruitment, selection, induction, training, performance evaluation, rewards management and discipline management. 19 Jabbar and Abid (2014) The findings of the paper suggest that how HRM practices (Rewards, Assessment, Supervisory Behavior, Management Commitment and environmental Training) influence employee motivation to become involved in the organizational EP. 2.3.2.1 Greening the firm via recruitment and selection practices The main goal for recruitment and selection is to attract potential applicants and hire them as employees for a given organization (Jabbour and Santos, 2008a). To fill an existing and projected job openings, the 31 recruitment process aims to locate and motivate potential candidates to apply; therefore, the recruitment process influences the quantity and diversity of candidates for a specific vacancy (Jabbour et al., 2008; Fayyazi, 2015); in fact, attracting high-quality employee is crucial for the firms that want to obtain certain performance. The selection process aims to choose the ideal candidate from potential candidates list for a position (Jabbour et al., 2010). To build and maintain a green workplace the organization needs to select and hire an employee who supports and is interested in the environment (Renwick et al., 2012). Talent management is experiencing numerous pressures for change which has led many manufacturing organizations struggling to effectively manage next generation talent and fill the position with the right match (Muniandi and Nasruddin, 2015). Green job candidates, who comprise a large section of talented and knowledgeable manpower, use green criteria when applying for jobs, and, therefore, companies having green practices can attract good talent (Kapil, 2015b). In order to improve their selection attractiveness for an increasingly environmentally aware younger generation (Ehnert, 2009), before the organization sets out with the process of recruitment, it is important that they brand themselves as being green. The image that organizations build in the market should primarily be inspired by the thought that these organizations are environment responsive (Kapil, 2015a). Job seekers often 32 consider several organizations when they apply for a job, according to Renwick et al. (2012), they prefer organizations that have a close fit between their and the organizations’ values; which makes a recruiting organization’s environmental reputation and images increasingly outstanding in recruitment efforts. Guerci (2015) surveyed a sample of 180 students attending the final year of a Master’s in Business Administration at three universities in Northern Italy; based on their answers the results found that there is an impact of green reputation on attracting applicants but no impact of information on the recruitment website. Recruitment practices can support effective green management by ensuring that new recruits understand an organization’s green culture and share its environmental values (Jackson and Seo, 2010). As well as using interviews to draw out candidate’s environmental knowledge, values and beliefs (Renwick et al., 2012). In general, when this activity includes the environmental dimension, the EP of the company is implemented as an element to absorb talents (Jabbour, 2011). The recruitment messages should include environmental criteria (Arulraja et al., 2015). During job analysis, job description, and person specifications, HR managers should emphasize on environmental aspects, green accomplishments and what is expected out of future green employee (Mandip, 2012; Renwick et al., 2012). It should reflect the sustainability agenda and the company's website and other research tools available for candidate access clearly outline its greening attempt (Kapil, 2015a; 33 Arulrajah et al., 2015). These days, some companies have incorporated environmental and social tasks, duties and responsibilities as far as possible in each job in order to protect the environment (Arulrajah et al., 2015). This will help the employee in acknowledging that in the future he has to be a part of an environmentally sustainable organization. During shortlisting of candidates; employees’ selection process should ensure granting higher chances of being selected for environmentally committed candidates who were involved in previous related green initiatives earlier than those who, on the other hand, were not involved in such initiatives in the past (Jabbour, 2011). When interviewing candidates or evaluating them for selection, environmental-related questions are asked by those companies (Renwick et al., 2012; Arulraja et al., 2015). Nowadays many companies have designed environmental concerned new jobs or positions in order to focus exclusively on EM aspects of the organizations (Opatha, 2013). Going green in recruitment requires implementing technologies into HRM activities which is known as Electronic HRM (E-HRM) (Yusoff, 2015a); Green recruitment defined as a paperless process in which applications are invited through online tools (Audio/Video interview, Online test, SMS, emailing, apply through organizations website) to reduce the carbon footprint and cost of operations and minimize any travel related environmental impact (Muniandi and Nasruddin, 2015). The automation of HRM’s systems has ability into promoting sustainability as it simultaneously helps in reducing environmental waste (e.g., paper, staples, files) and social waste (e.g., process’ time for searching documents and 34 decision making), and economic waste (e.g., cost related to preparing documents, labours’ salary due to extra time of working) of conducting HRM’s task (Yusoff, 2015; Muniandi and Nasruddin, 2015). Green organizations have emphasized the importance of green recruitment (Hussain, 2013). Although it is clear that the recruitment and selection of employees who are committed to the environment are important for greening organizations, studies show that these practices do not always incorporate environmental aspects (Jabbour and Santos, 2008). Little is known about the dynamics of inserting environmental issues in an organization recruitment process (Fayyazi, 2015). While there is a lack of systematic studies exploring ‘green collar’ recruitment practices (Renwick et al., 2012), a notable exception is Jabbour et al. (2010) who surveyed 94 Brazilian organizations and found recruiters selected candidates based on environmental knowledge and motivation. 2.3.2.2 Greening the firm via training For Ivancevich (1995), training may be understood as a systematic process that leads the employees’ behavior towards accomplishing the set of organizational objectives. As a consequence, it is considered as an essential component of successful companies. It is the preferred practice for changing the skills, knowledge and behavior of management and non- management employees (Patel, 2014). Environmental training (ET) stands out as one of the primary methods through which HRM support EM (Daily et al., 2012; Jabbour, 35 2013; Brío et al., 2008, 2007). According to Teixeira et al. (2012), “green training is one of the most important tools to develop human resources and facilitate the transition to a more sustainable society”. It’s used to improve the capacity to address EM situations (Jabbour, 2013). ET can be understood as an important human or organizational factor to the recent literature on GHRM (Renwick et al., 2012; Jackson and Seo, 2010). Opatha and Arulrajah (2014) stated that the most significant impact towards environmental awareness among employee was through environmental training. It was also responsible for creating the culture to foster the green practice in organizations. Employee training and development programs should include social and environmental issues at all levels, from technical health and safety considerations on the shop floor to strategic sustainability issues at executive management and board level (Mandip, 2012). The environmental maturity of companies tends to increase as environmental training improves and becomes more intense (Teixeira et al., 2012). In the same token, it was essential to identify the relevant and appropriate training for the respective employee (Margaretha & Saragih, 2013). According to Cherian and Jacob (2012), it was imperative to design Environmental training based on training needs in order to garner optimum benefits from the training. Training needs have to be detected in an integrated way, involving the staff responsible for the EM programs and other areas of a company (Ferna´ndez et al., 2003), and including top management as well (Jabbour and Santos, 2008a). 36 Employee is required to possess a sufficient amount of knowledge and skills in respect of greening and without this knowledge and skills (competencies) it is not possible for the employee to become a green employee (Daily and Huang, 2001; Ramus, 2002; Rothenberg, 2003; Sudin, 2011). Training, development and learning plans should include programs, workshops, and sessions to enable employees to develop and acquire knowledge in EM, green skills, and attitude (Prasad, 2013). This knowledge allows the employees to be able to achieve the objectives of EM programs (Jabbour, 2013). ET is fundamental to any successful activity of EM, conservation, and recycling of resources (Jabbour, 2013). Renwick et al., (2008 and 2012) suggest certain green training and development practices such as training staff to produce green analysis of workspace, provision of specific training on EM aspects of safety, energy efficiency, waste management, and recycling, development of green personal skills, and re-training of staff losing jobs in relevant polluter industries, supporting flexible schedules and telecommuting, and reducing long-distance business travel (Jackson et al, 2011) and provide opportunity to engage employees in environmental problem solving (Zoogah, 2011) are very useful to reduce the negative environmental impacts of the organizations. Also, job rotation in green assignments should become an essential part of career development plans of talented green managers of the future; it provides a useful way to train green executives or future board members in EM and is seen as a crucial part of successful environmental programs (Wehrmeyer, 1996; Arulraja et 37 al., 2015; Prasad, 2013). Other specific types of training, such as participation in teams, brainstorming and construction of consensus may qualify employees to participate in EM programs (Govindarajulu and Daily, 2004) More and more people are passionate about environmental stewardship and appreciate the opportunity to obtain training in this area. Employees should have access to workshops and conferences, ecologically- friendly (eco-friendly) topic (Liebowitz, 2010). Extensive use should be made of online and web-based training modules and interactive media as training tools for not only EM training but for other functional areas as well. Training managers should rely more on online course material and case studies rather than on printed handouts, thus further reducing the use of paper (Kapil, 2015b). Organizations should ensure that new recruits understand their environmental responsibilities, become familiar with health and safety arrangements, appreciate the corporate environmental culture, adopt the company's environmental policy and practices, and know given relevant contact persons within the organization (Renwick et al., 2008; Renwick et al., 2012). Also, Mandip (2012) added that they should be exposed to the organization’s environmental policy. So from the very first day of work the new employee determines his own goal which aligns to the organization’s policy. 38 Wehrmeyer (1996) recommends seven key elements of a training program in EM: (1) The environmental message has to be kept simple and relevant; (2) The training sessions have to be kept short, informal and for small groups; (3) Employees have to be involved in the open thematic sessions; (4) It is important to notice who the leaders of the environmental management are among the employees of a session; (5) The ecological dimension has to be treated as a new value of organizational culture; (6) The environmental results achieved by employees of other companies are important to be highlighted; (7) The effects of training in the employees’ routine of work have to be evaluated. Although the research on the relationship between human factors and environmental sustainability is slowly progressing, environmental training has attracted the most attention from researchers and practitioners (Jabbour, 2013). Daily et al. (2012) analyzed the influences of environmental empowerment and environmental training (independent variables) on employees' perceptions of EP (dependent variable). Those authors found that environmental training tended to influence EP more than environmental empowerment. Teixeira et al. (2012) presented case studies on the relationship between environmental training and EM based on Brazilian cases, suggesting that these two variables of contemporary organizational management have co-evolved. However, there remains a lack of research that integrates and systematizes the available knowledge 39 on organizational environmental training; more research is needed on environmental training, combining training and GHRM and defining/measuring the objectives of the environmental training actions. (Jabbour, 2013; Daily et al., 2012; Jackson et al., 2011; Jackson and Seo, 2010). 2.3.2.3 Greening the firm via Performance Management System Performance Management System (PMS) is defined as a challenge of how to measure EP standards between different departments of a firm and gathering beneficial data about the EP of managers (Wehrmeyer, 1996). One of the parts of PMS is the performance appraisal which is defined by Ivancevich (1995) as the dimension of human resources that aims to improve employees’ performance and productivity over time through analyzing and evaluating an employees’ performance related to their responsibilities and comparing their goals and their result. Performance management programs are essential to guarantee the effectiveness of green management work over time because they guide an employee’s performance to the EP desired by an organization through measuring employees' contribution to the advancement of EP (Jabbour and Santos, 2008; Jackson et al., 2011). In order to sustain good EP, organizations must establish Environmental Management Information Systems (EMIS) and environmental audits (Arulrajah et al., 2015). HR managers prevent harm to EM when they integrate EP into PMS by setting EM objectives, monitoring EM behaviors, and evaluating 40 achievement of environmental objectives by using green work rating as the key indicators of job performance (Sharmin, 2015; Kapil, 2015b). Without this practice, any organization cannot ensure the realistic EP (firm level) in long term basis (Arulraja et al., 2015). Evaluation of green performance of employee must be done separately or at least as a part of the performance evaluation system of the organization. It could be done by adopting corporate-wide metrics for assessing resource acquisition, usage, and waste; implementing information systems to track resource flows; and conducting field audits to provide employees opportunities to identify problems while gaining information and feedback about the green performance of the firm (Jackson and Seo, 2008). Incorporating EM objectives and targets with the performance evaluation system of the organization, or using green performance indicator and appraisals only is not enough. Green schemes, performance indicators, and standards should be clear to all levels of staff through performance evaluation system and establish a firm-wide dialogue on green matters (Renwick et al., 2008; Renwick et al., 2012). Green targets, goals, and responsibilities for Managers and employees should be created and included in their appraisals (Prasad, 2013; Renwick et al., 2012). Also, supervisors and managers of those companies should provide a regular feedback to the employees or teams to achieve environmental goals or improve their EP (Arulraja et al., 2015; Jackson et al., 2011); this practice will help the employees to enhance their knowledge, skills and ability. Organizations may provide an online system that allows employees to track 41 their own carbon emissions and provide an opportunity for employees to participate and suggest practical ways to make the organization greener (Kapil, 2015b). There are not only good rewards for people who have good EP, but there might be negative consequences, such as suspensions, criticisms and warnings, in performance management systems to get employees to make environmental improvements (Renwick et al., 2008). 2.3.2.4 Greening the firm via Pay and Reward System The main goal of reward and compensation policies is to attract, retain and motivate the best employees to foster the development of new knowledge, and abilities, which lead to the achievement of organizational goals (Teixeira et al., 2012). The reward and compensation systems could contribute to EM in an organization if it focuses on avoidance of negative behaviors and encourage the eco-friendly behavior. Ferna´ndez et al. (2003) conducted several studies which proved that paying for EM performance is really effective. Rewards motivate and increase commitment from workers to be environmentally responsible and get involved in eco-initiatives (Renwick et al, 2012; Daily &Huang, 2001). It values employees who contribute the most to environmental sustainability (Renwick et al., 2012); through recognizing and rewarding employees who dedicate to environmental goals by helping in waste reduction and those in the middle management who encourage their 42 subordinates to adopt green practices, motivate managers and non- managerial employees on corporate EM initiatives (Kapil, 2015a; Arulraja et al., 2015; Jabbour and Santos, 2008). It sensitizes employees to environmental consciousness; and discourage undesired behaviors while reinforcing preferred ones (Sharmin, 2015); and doing so needs effective employment of both incentives and disincentives (Renwick et al., 2008).The core success of recognition rewards is making them available at different levels within the organization (Arulraja et al., 2015). There are many green reward management practices that can be used to gain green stewardship/citizenship; such as linking suggestion green scheme with rewards system, linking participation in green initiatives with promotion/career gains (managers advance through supporting staff in EM), or by providing incentives to encourage recycling and waste management, supporting flexible schedules and telecommuting, and reducing long-distance business travel, can include the use of nature- friendly workplace and lifestyle benefits, which may include carbon credit offsets, free bicycles and pollution-free vehicles (Jackson et al, 2011; Renwick et al., 2012; Jabbar and Abid, 2014; Prasad, 2013). Also, managers can use rewards to encourage some green creativity and innovation among the workforce by asking employees to bring innovative green ideas pertaining to their individual jobs (Shoeb, 2015). There are several types of reward practices to reward green skills acquisition, it can be done using monetary-based EM rewards (bonuses, 43 cash, premiums), use of non-monetary based EM rewards (sabbaticals, leave, gifts), use of recognition-based EM rewards (awards, dinners, publicity, external roles, daily praise), positive rewards in EM (feedback) (Renwick et al, 2013; Opatha, 2013). Developing effective monetary incentives could be a challenge for HR managers because of the difficulty of accurately and fairly evaluating environmental behaviors and performance (Fernández et al, 2003). Hussain (2013) suggests that the amount of reward depends on a measure of the environmental behavior of the single employee but without significant results in the EP of the company. However, more researchers needed to determine how can HR manager design and implement green compensation practices that may lead to the achievement of the corporate environmental goal (Shoeb.2015). 2.3.2.5 Greening the firm via supportive organizational culture Organizational culture could be defined as the set of basic assumptions that a certain group came up with, discovered or developed in its process of learning in order to deal with problems of either external adaptation or internal integration (Jabbour et al., 2008). From an environmental aspect, Harris and Crane (2002) define the organization environmental culture as the set of assumptions, values, symbols, and organizational artifacts that reflect the desire or necessity of being an environmentally correct organization. 44 According to Ferna´ndez et al. (2003), organizational culture and HRM are closely linked and critical for the achievement of superior environmental patterns: in fact, organizations, that have solid mechanisms of EM supported by an organizational culture which values environment, tends to attract more motivated and competent workers, therefore, to be more powerful when a company has a group of collaborators who are environmentally aware. Govindarajulu and Daily (2004) consider organizational culture as a factor of either promotion or inhibition to employee's motivation and willingness to adopt responsible environmental behaviors, and employee's participation in improvement projects for the EM in companies (Rothenberg, 2003; Ones and Dilchert, 2012; Paillé et al., 2013a; Ramus and Steger, 2000; Paillé and Raineri, 2015). Based on that both a weak organizational culture and inefficiencies in HRM are considered as major barriers to the implementation of environmental action processes (Brío et al., 2008). Johnson and Walck (2004) stated that company could integrate environmental dimension in the set of values that form an organizational culture effectively using five steps as follows: (1) Top management recognizes and spreads the environmental dimension as a new value of a company; (2) Top management recognizes and spreads how environmental practices can influence the routines of a company; (3) Top management shows how the environmental values have to support the various phases of EMS; (4) There are systems for training, 45 performance appraisals, and rewards focused on employees’ EP; (5) Employees incorporate the ecological dimension as a new organizational value. Many researchers support that top management and supervisor’s support is a key component to successful organizational performance and implementation of organization-wide EM programs; they are crucial for motivating employee towards EM. (Daily and Huang, 2001; Ramus and Steger, 2000). Researchers have suggested that when supervisors adopt the democratic style of decision making towards EP and show that management is strongly committed, employees so participate more willingly (Ramus، 2002; Govindarajulu and Daily, 2004). Also, Ramus (2001) proved by an empirical study that one of the most significant factors that increase employees’ environmental initiatives is supervisors who incorporated daily appreciation in their organizations. All level of employees should understand the environmental values in the organization; if top management didn’t clarify environmental goals and environmental responsibilities employee participation in environmental work will be decreased, as a result, top management should broadcast environmental programs, initiatives, and goals again and again to all employees (Ramus, 2001; Daily and Huang, 2001; Daily et al., 2007; Govindarajulu and Daily, 2004). Also, top management has to provide employees with a feedback of EP in order to maintain correct values, and should reinforce them through education and training (Ferna´ndez et al., 46 2003). On the other hand, top management should define penalties for environmental regulations and rules violation, so disciplinary actions (warning, fining, suspension, warnings, suspensions for lapses etc.) are taken against an employee who violates environmental rules (Renwick et al., 2008; Renwick et al., 2012; Mandip; 2012). Top management in an environmentally proactive organization that provides strong culture that gives employee time for experimentation towards EP and making environmental improvements without excessive management intervention which would ultimately increase their motivation towards EM to (Daily and Huang 2001; Daily, et al., 2007; Govindarajulu and Daily, 2004) and promote innovation and risk taking (Govindarajulu and Daily, 2004; Ramus, 2001; Ramus and Steger, 2000). Paillé and Mejía Morelos (2014) contend that “if employees are aware that becoming greener is an important objective of their employer, and the employer demonstrates its interest in creating, developing and maintaining high-quality relationships in the long term, individuals might be more prone to reciprocate by performing pro-environmental behaviors on the job”. From this standpoint, organizational culture is the most important and most relevant human factor in the greening of organizations (Harris and Crane, 2002), based on top management support (Govindarajulu and Daily, 2004), values, and principles for supporting EM in companies (Jabbour et al., 2010). 47 2.3.2.6 Greening the firm via Employee empowerment and participation Even though top management commitment to EM provides the underpinning framework for EM, without wider employee engagement the success of EM may be limited (Renwick et al., 2012). HR managers have to encourage the employee to participate and initiate the green and eco- friendly ideas of the organization. The traditional organization (top-down management) hinders the independence of workers, in contrast with the flat and horizontal organization which motivates the empowerment of workers (Govindarajulu and Daily, 2004). Therefore, HR staff can highlight the necessity to create a participative work environment to top management; where employees can disagree with management and offer different ideas to address important issues (Liebowitz, 2010). Employee participation creates an environment where the employee has an influence on decisions and actions that affect their jobs. It also leads to acceptance of the organizational objectives and targets by the employee (Patel, 2014) beside enhancing and facilitating motivation and morale of the employees (Patel, 2014; Daily & Huang, 2001); in green initiatives it increases the chances of better green management as it aligns employees’ goals, capabilities, motivations, and perceptions with green management practices and systems (Shoeb, 2015; Sharmin, 2015). Encouraging employee participation creates entrepreneurs within the organization who are socially or ecologically oriented; to achieve that employee should get 48 involved in formulating an environmental strategy which will enable them to create and expand the requested knowledge to market green products (Margaretha and Saragih, 2013). Employee participation enhances a tacit knowledge inside people; which has great influence in identifying pollution sources, managing emergency circumstances and expanding preventive solutions (Boiral, 2012). The enhanced tacit knowledge will improve EP as employees possess knowledge and skills that managers lack Rothenberg (2003). Mandip (2012) suggests that the workers can participate on environmental projects in two ways: � Gather the specialist staff (who are more involved in project initiation) with line level workers (who are more likely to participate in project implementation) in a suggestion programs and problem-solving circles. � Encourage employees to seek green habits like allowing flexible work weeks, establishing a carpool program, offering free or discounted free transportation passes, adding car sharing as an employee benefit and setting up transportation savings account The role of empowerment in organizational environmental issues has received significant attention in recent years (Daily et al., 2007; Daily and Huang, 2001; Ferna´ndez et al., 2003; Govindarajulu and Daily, 2004; Ramus, 2002). Many researchers support that individual empowerment 49 positively influences productivity and performance, and facilitates self- control, individual thinking, and problem-solving skills, which should be developed at all hierarchical levels of an organization, including the operational level (Daily et al., 2007; Renwick et al., 2008). Empowerment is defined in a way that reflects the sharing of power with employees. Therefore, environmental empowerment is defined as a process through which authority shares its power with employees to address environmental issues (Daily et al., 2011) which offer the independence for employees to generate creative solutions to solve problems and to invest the best of their abilities. In EM practices, empowered employees are more susceptible to be involved in the improvement of the environment (Govindarajulu and Daily, 2004). Researchers support that best idea for environmental initiative are originated by all employees who work in that particular area (Liebowitz, 2010; Fernández et al., 2003) It's more convenient in many cases for managers to set the environmental goals for employees (such as reduce hazardous wastes by 10%); but, frequently, it will be much better if employees are in the position to participate in determining how to achieve that goal (Liebowitz, 2010). The majority of environmental problems cannot be related to individual projects only; the complexity of these problems requires teamwork of a conglomeration of various types of individual competencies who share respect for the environment to implement EMS effective more 50 than individual contributions (Daily et al., 2007; Rothenberg, 2003;Neto and Jabbour, 2010 ), Beside effective implementation of EM teamwork is essential in demonstrating the value of HR; also, it foster EM practices and tacit knowledge particularly when environmental problems are group-oriented within organizations (Daily & Hung, 2001; Daily et al., 2007). 2.4 Drivers, barriers and excepted benefits of GHRM Based on the literature, this section aims to provide a brief explanation of factors that could drive or hinder an organization from implementing GHRM, as well as its associated benefits and challenges. 2.4.1 Drivers Companies now realize that they have to develop a powerful social conscience and green sense of responsibility where corporate responsibility is not just a brand building tool to have, but it is an essential factor for business development (Sathyapriya et al., 2013). Traditionally, a majority of companies around the world has used the compliance approach in their environmental or green management initiatives driven by laws and regulations (Sudin, 2011). Few researchers have been done to define the drivers of applying GHRM in organizations. In 2011, SHRM conducted a survey “Advancing Sustainability: HR’s Role is “to collect more information on what companies are doing to balance financial performance with contributions to the quality of life of 51 their employees, the society at large and environmentally sensitive initiatives. HR professionals Firms were asked to identify the main driver for their organization’s investment in sustainability. The key drivers were: 1) contribution to society, 2) competitive financial advantage, 3) Environmental considerations 4) Economic consideration and 5) health and safety considerations. Less frequently cited drivers included employee activism, market share improvement, public/media relations strategy, consumer pressure, local/federal regulations, internal activism, local/ federal incentives and recent corporate scandals. Jafri (2012) conducted a study to identify the drivers behind GHRM practices in certain automobile manufacturing organizations in India. Based on data analysis it was found that the main driver of GHRM practices is its contribution to society and health and safety considerations followed by environmental considerations, Economic considerations, Public relations strategy, Competitive advantage, finally Market share improvement. In 2008 SHRM Green Workplace survey to examine environmentally responsible practices from the perspective of HRM professionals; they were asked to select their top three drivers of environmentally responsible programs for organizations. The results indicate that the top driver of GHRM practices is a contribution to society followed by environmental considerations, economic considerations, health and safety considerations, and employee activism. 52 Yusoff et al. (2015b) interviewed HRM managers in four Malaysian certified ISO 14001 firms located in Penang and Kedah, Malaysia. Based on interview analysis they draw five motivational factors to the implementation of GHRM and its success are centered on (a) sustainable policies (such as ISO 14001, OHSAS 18000, and DOA); organizations which apply these policies choose to implement GHRM practices. It has been noticed that organizations will follow sustainable policies set because of government pressure, (b) top management support; organizations depend on top management support before adopting any green initiatives in HRM, because it enables changes to take place easier, (c) benchmarking; these organizations agree that benchmarking best practices from other organizations is one of the factors they practice GHRM. (d) leadership meetings, consultation, and seminar; HRM gets the orders to transform or change its practices from leadership meetings, consultation, and seminar, and (e)employees’ awareness, participation and receptivity; the HRM professionals stated that employees’ awareness, participation, and receptivity are very important to help them successfully implement GHRM. 2.4.2 Barriers It is not so easy making sustainable firm and especially greening HRM; there are lots of barriers that the progress requires overcoming. This section will briefly present some of barriers found in the existing literature: Aggarwal and Sharma (2014) demonstrate few challenges or limitations of implementing GHRM are such as: difficulty of changing 53 employee’s behavior in a short span of time, the differences between employees motivation to participate in the promotion of GHRM practices in the organization, developing GHRM as the new corporate-wide culture is a heavy process, recruitment and induction of green employees with quality talents is a challenging task, difficulty of measuring the effectiveness of GHRM practices in employees’ behavior, HRM professionals are faced with being expected to provide the essential green structures, green processes, green tools, and green thinking to make the best selection and develop the future green leaders of the organization. Jafri (2012) conducted a study to identify the barriers to the implementation of GHRM practices; the main barriers are the cost of implementing green programs and cost of maintaining green programs, followed by cost of maintaining the program, lack of support by management, lack of support by employees. Another study done by Fayyazi et al. (2015) to investigate the barriers of the GHRM practices implementation in the oil industry. They found 13 factors that hinder the implementation of GHRM. The top five barriers were a lack of a comprehensive plan to implement GHRM and ambiguous of green values, followed by lack of GHRM infrastructures, The Lack of understanding of green policies, The unavailability of HR system structure, lack of organizational leadership support. Furthermore, staff resistance had the lowest importance. 54 In another study, Yusoff et al. (2015c) determined the challenges of GHRM into the technical issues, demographic barriers and receptivity, persuasion skills, attitude or receptivity toward change, funds, difficulty to measure and feel, mental change difficulty, perceived low attachment to sustainability;, and difficulty to ensure employees practice sustainability in their private life. 2.4.3 Excepted benefits of GHRM practices Many researchers discussed what organization could benefit from using GHRM. Margaretha and Saragih (2013) has highlighted that organizations focus on environmentally sustainable business practices by initiating greener corporate culture resulting in greater efficiencies, lower costs and creating an atmosphere of better employee engagement. Firdaus and Udin (2014) stated that many firms may use GHRM, have benefited from their implementation, their employees have a better morale and green organizations have better financial performance. Also, the increasing understanding of the companies as to how the green initiatives not only benefit the environment but also help in attraction and retention of the scarce talent pool makes GHRM today an important field of business management (Patel,2014). Equally, the GHRM practices are likely to improve employee well- being in the workplace, not just through improving the working environment and satisfying the needs of an increasingly environmentally 55 aware workforce, but also to contribute positively to both employee well- being and organizational performance (Renwick et al., 2012). Aggarwal and Sharma (2014) mentioned many advantages or benefits of GHRM in achieving broader objectives such as: cost saving, corporate social responsibility, talent acquisition, and management and gaining an advantage over the competition. It further has the following benefits: It helps in building green employer image to attract green talents, enhance brand image of the company in the market, could be used as a marketing strategy, Also, it can be a part of enhancing the quality of the overall organization both internal and external and improving relationship with the company with its stakeholders- customers, suppliers, vendors, shareholders, government agencies, employees and the media. 2.5 Environmental management in Palestine The developing countries have a great diversity in economic, cultural, and environmental issues interest and concerns. There is a drastic difference in environmental concerns among the Euro-Mediterranean countries and the Arab countries in the Middle East and North Africa (MENA) region, due to a variety of reasons including trade relationships, geographic proximity, and Tran’s boundary pollution issues. Distant or neighboring developed countries and trade partners play the main role by pressuring to improve EP; also, import restrictions are commonly used to force these countries to abide by environmental laws or improve EP and curb environmental damages (Djoundourian, 2012). 56 Regarding the Palestinian situation, the Ministry of Environmental Affairs (MEnA) was created by the Palestinian National Authority in Dec 1996. MEnA, now called The Palestinian Environmental Authority (PEnA), is responsible for developing regulations, strategies, management plans and monitoring programs, which aim sound use and conservation of the environment in Palestine by developing human resources and capacity building, promoting environmental awareness programs and activities. MEnA is acting as the central representative authoritative body responsible for all environmental issues in the Palestinian Territories. Also, its stated policy is to actively involve other ministries, institutions, Non- Governmental Organizations (NGOs) and the private sector in the decision- making process (MEnA, 2015). One of the main sectors under MEnA supervision is the Industrial sector. The industry is a main pillar of the economy and the establishment of a future Palestinian state (MEnA, 2015). The industrial sector is considered to be a source of various forms of environment pollution in Palestine; such as producing hazardous chemical pollutants and solid, liquid and gaseous waste. Its situation needs to be assessed, monitored and rectified (Environmental Quality Authority, 2010). Industries with long-term cumulative pollution problems, including such high-pollution industries as the oil industry, chemical industry and steel industry are more willing to take the initiative to disclose environmental information than lower-pollution industries such as service 57 industries (Shih et al., 2006). The fact that the industries are major consumer of natural resources like air, water, land minerals, plants and animals made its impact so great. Therefore, it affects the environment and become the basic cause of for pollution and ecological imbalances. The table below indicates the industries effecting natural resources (Shaikh, 2012): Table (2.2): Food, chemical, and pharma industries effect on natural resources No. Industry Natural Resources used Products Impact /Effects 1 Pharma Plants and animals Medicines Flora and fauna Bio-diversity 2 Paper Plants & Trees Paper Forest 3 Automobiles Petroleum Products Cars & trucks Air pollution 4 Food Product Plants & animals, water Human consumption product Air, water pollution 5 Chemicals Soil, ores, minerals Agricultural products, Industrial products Pollutes environment air, water Palestine has many industrial zones and industrial activities. Some industries emit smoke and hazardous and toxic gases in huge quantities. Thus, the level of greenhouse gases in the atmosphere has increased (European Environment Agency, 2014). EQA & PlanBleu (2015) have done a first estimation for emissions from 600 industries across Palestine to the air, water and land. Based on their results, it has been found that there is significant uncertainty in these estimates primarily due to the fact that there 58 has been no source and/or ambient monitoring of industries in any of the three emission areas. In the first stages of this study, a meeting with a committee from EQA was conducted to decide which industries to target in this research. They recommended to cover three industries (chemical, food and pharmaceuticals industries) due to their direct effect on human health and environment. Therefore, the targeted sample will cover companies from these three industries. 2.6 Food, chemical and Pharmaceutical Industries in Palestine Statistical Yearbook of Palestine 2015 (PCBS, 2015) shows that 17,047 enterprises engaged in the industrial sector, with more than 782243 employed persons in this sector in Palestine for the year 2014. The majority of the industrial enterprises are private, family-owned small enterprises employing fewer than 10 workers. The number of large industrial enterprises in Palestine is still very limited, with only about 100 of the manufacturing, mining and construction enterprises having a workforce of more than 100 employees (USAID and PFI, 2009). The value of the output of enterprises in industrial activities was $ 410,217 million; intermediate consumption totaled $2,390.8 million; and the value added was $171,214 million in 2013 (PCBS, 2015). The industrial sector is represented by the Palestinian Federation of Industries (PFI); a private national institution. It includes food and 59 beverages, construction, stone and marble, pharmaceuticals, chemicals, metals and engineering, textiles, garments and leather, paper, printing and packaging, handicrafts, plastic and rubber, and furniture (USAID and PFI, 2009). Table 2-3 shows some general information about the three selected sectors (USAID and PFI, 2009). Table (2.3): General information about selected sectors N o . o f fi rm s T o ta l in ve st m en t (m il li o n ) G D P % N o . o f em p lo y ee s M a rk et sh ar e % E m p lo y ee p ro d u ct iv it y ($ ) Pharmaceuticals 6 90 <1 1,200 55 44,000 Food and Beverage 224 480 4.8 8,000 50 28,000 Detergents and Cosmetic 55 NK NK 825 35 NK The pharmaceutical industry in Palestine is considered unique in terms of innovation and development. This industry was deve