Human Resource and Management Literature Review

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Green" Human Resource Practices And Environmental Performance

A number of enterprises have historically adopted the approach of compliance within their environmental initiatives, and by consequence, rules and legislations guiding their environmental approaches. However, over the last many years, new consumer needs, consumer boycotts, global environmental standards, dynamic preferences, and other environmental factors have influenced core values and the fundamental business strategies of corporations (Daily, Bishop and Steiner, 2007). Organizations are part of society, and it is imperative that they function like team players; this is where the concept of "green" management becomes relevant. A key schema now is that a company's outcome is strongly impacted by environmental concerns (Tariq, Jan & Ahmad, 2016).

Environmental and human resource (HR) management's effect in the business context relates powerfully to a more comprehensive association between organizations' economic and environmental performance. In this context, it is frequently argued that improved environmental performance results in improved economic performance. Growing environmental concern and awareness has caused public regulatory agencies and other players to broaden environmental concerns. Furthermore, companies have invested in their respective environment management structures for enhancing their reputation in society and reducing vulnerability to environmental catastrophes (Kassinis & Vafeas, 2006). Likewise, buyers are focusing increasingly on companies' environmental conduct, and this affects their brand loyalty and preferences (Autry et al., 2013; Dangelico & Pujari, 2010). In fact, a growing share of chief executives has prioritized environmental sustainability, making it a permanent subject on their respective corporate agendas (Mckinsey, 2014). Recent research works have concentrated on HRM practices' role, targeted at management of individuals and tasks towards desired goals (Boxall, Purcell, & Wright, 2009, p. 1). HR departments aim to develop the environmental performance of their organizations (also termed as green HRM), and offer empirical backing to the notion that certain green HR practices have a positive relationship with the environmental performance of companies (Guerci, Longoni & Luzzini, 2016).

0. "Green" Human Resource Practices and Organizational Performance

For ensuring a firm acquires proper green contributions and job performance by its workforce, HRM function modification or adaptation to become green is essential. Traditionally, human resource departments are in charge of eighteen HRM functions, namely, job analysis, job design, HR planning, selection, recruitment, hiring, induction, development and training, welfare management, performance appraisal, salary/wage and compensation management, career management, employee movement management, safety and health management, discipline management, labour relations, incentives management, and grievance management.

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Going green with regard to one's HRM functions entails including practices, policies, and procedures that guarantee appropriate green contributions and job performance by personnel. In an ideal world, all functions can be made green. For instance, the employee recruitment function can foster effective environmental management by making sure newly recruited individuals share a company's environmental ideals and understand the environmental culture of the company (Opatha & Arulrajah, 2014).

Although the broader HRM literature accepts the existence of a relationship between specific HRM practices like personnel engagement and positive business outcomes (for instance, Hunton-Clarke and coworkers, 2002), literature on the concept of Green HRM is marked by assertions and counter assertions (for instance, Jabbour, Nagano and Santos, 2008; Jabbour and Santos, 2008,). There is also a lack of empirical research connecting distinct HRM practices in the many levels or steps of Green HRM implementation. One of the latest reviews (by Redman, Maguire, and Renwick, 2013) notes that much of the existing information on Green HRM practices is based on practice. There is a need of more precise empirical assertion on the link between different components of the human resource management system, like personnel engagement, personnel attitudes towards environmental programs, and whether or not Green HRM is profitable, considering its effects on candidate attraction, retention and other such factors (Benn, Teo & Martin, 2015).

2.0 Theoretical Background and Hypotheses Development

Managers, corporate scholars, and policymakers were all drawn greatly to the stakeholder theory. A stakeholder perspective of organizations developed, with the proposition that corporate executives must formulate specific processes for addressing stakeholder expectations. Drawing from stakeholder theory's instrumental significance, literature has furthered the notion that, for long-term corporate wealth maximization, a bigger group of players ought to be deemed as stakeholders; further, managers must devise and put specific processes into action for addressing stakeholder expectations (this is labeled as stakeholder management). In this regard, Preston, Sachs and Post (2002, p. 8) stress the point that an organization's capability of generating sustainable long-term wealth is decided by its relations with key stakeholders. Additionally, any distinct stakeholder relationship is capable of being the most crucial one on any given issue or at any juncture. Considering lawmakers' and society's immense emphasis on environmental facets, as well as financial performance, innovation benefits and competitiveness….....

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