GREEN HRM AND ORGANIZATIONAL PERFORMANCE: MEDIATING ROLES OF ORGANIZATIONAL SUSTAINABLE PERFORMANCE, GREEN CULTURE, AND GREEN EMPLOYEES BEHAVIOR

Abstract

In recent years, climate change is observed to be an increasing concern for everyone. Human resource management (HRM) is a valuable asset of a corporation that has recently changed much with the introduction of sustainability in the context of HRM or more specifically green HRM. Hence, the study aimed at examining the impact of green HRM on organizational performance with the mediating effect of organizational sustainable performance, green culture, and green employees’ behavior. For this purpose, a cross-sectional analytical study conducted to verify the proposed model that comprised of HR professionals working in different small and medium enterprises (SMEs) in the industrial estate of Peshawar, Khyber Pakhtunkhwa (KP) province. Using purposive sampling technique, the data was collected through a survey questionnaire from a sample of 250 HR professionals’ human resource professionals working in SMEs of industrial estate Peshawar, KP. Partial Least Squares Structural Equation Modelling was used to test the study hypotheses. The findings show a positive impact of green recruitment and selection, green training and development, and green compensation on the organizational sustainable performance. However, the study did not record any impact of green performance management, and green employees’ relation on the organization's sustainable performance. The results further revealed that there is a positive impact of green recruitment and selection, green performance management, and green compensation on green organization culture. However, the results did not validate any impact of green training and development and green compensation on green organization culture. Further, the results showed a positive impact of green recruitment and selection and green training and development on green employees’ behavior. The study also recorded that there is a positive impact of green organization culture and green employees’ behavior on organization performance. However, the study did not record any impact of organizational sustainable performance on firm performance. Finally, the study established that organizational sustainable performance and green organization culture mediated between the relationship of green compensation and organizational performance. It was further noted that green employee’s behavior mediated between the relationships of green recruitment and selection and green training and development and organization performance. Besides, filling the exhibited gap in the literature, the study contributes insights for policy making and practice. The conceptual framework is significant in that to adopt a holistic approach and addresses some novel relationships never examined by the prior literature or attempted somehow by any researcher.