Analyze the Influence of Organizational culture on the Adoption and Effectiveness of GHRM initiatives
dilna.balaji@gmail.com ,
Abstract: In response to environmental concerns, more and more companies are integrating environmental management into their green human resource management (GHRM) strategies. If implemented, GHRM's green service innovations and company-wide emphasis on sustainability may improve environmental performance and ensure the long-term viability of the company. The research team behind this project hopes to find out how green HR practices, green company culture, green service innovation, and eco-friendly business results interact with one another. Information for the study came from three hundred and fifty hotels in Thailand. We use structural equation modeling (SEM) to model the paths. The findings demonstrate that green HRM significantly impacts green company culture for the better. Environmental performance may be greatly improved via green service innovation and green human resource management. Innovation in environmentally friendly services is greatly enhanced by green company culture. Environmental issues have garnered increased attention in the twenty-first century from a wide range of sectors, including politics, the public sphere, and industry. In order to stay ahead of the competition, many companies are adopting EMS (Environmental Management System) strategies. Integrating environmental management into HRM is becoming more necessary - Approaches to Sustainable Human Resource Management.
Keywords: GHRM, culture, organizational, Environmental performance
INTRODUCTION
The trials and tribulations of good corporate governance and cordial connections between employees and customers form the bedrock of an organization's culture, which in turn is built on the assumptions and principles of its founders. “Organizational culture has a major role to ensuring successful outcomes for an organisation as it adapts the set of values, beliefs and norms which are held by the organization” was defined. Importantly, stakeholders such as workers and customers are the ones most impacted by an organization's culture (Warrick 2017). Business operations, personnel management, marketing efforts, and the well-being of both workers and customers are all affected by an organization's culture (Longman et al. 2018). The importance of cultural integration in an organization's culture should not be overlooked. Most local and national firms have gone global with the advent of the worldwide commerce has increased tremendously due to the advent of the internet and computerization. One consequence of globalisation is the increased cultural blending that has resulted from the greater proximity of various marketplaces and enterprises. But when different companies have tight relationships with one another, cultural clashes happen, and operational challenges ensue. Aligning and adapting business tactics they adhere to the norms and beliefs of the country where they do business is crucial for corporations to function on a long-term basis and maximise profits. When company values align with strategic goals, it leads to productive actions.
Organisations across all industries are seeing the need of becoming green in our modern day, when sustainability and environmental problems are at the forefront of everyone's mind. There has been a dramatic change in the way companies operate as a result of the realisation that resources are limited, the effects of climate change, and social demands to adopt environmentally responsible practices (Ismail, 2023). One new strategy in this dynamic field is "Green HRM" seeks to harmonize HR practices with environmental protection in order to procedures with eco-friendly goals (Bahuguna, Srivastava, & Tiwari, 2023). Although there is enough evidence of the environmentally beneficial outcomes of implementing Green HRM practices, the wider workforce is still a crucial area that has to be explored (Tuan, 2022). An increasing amount of research is focusing on Green HRM's potential to affect not just environmental outcomes but also employee engagement and commitment (Irani, Kiliç, & Adeshola, 2022; Nurhayati, et al, 2022a). An organization's carbon footprint, natural resources, and employee environmental consciousness may be reduced via a variety of green HRM strategies. These practices include a wide range of topics, from promoting energy efficiency and recycling to making sustainability a part of company culture. Although there has been a lot of study on how Green HRM practices affect environmental outcomes, there has been far less investigation into how these strategies affect agricultural workforces (Ansari, Farrukh, & Raza, 2021). There is a dearth of information about how Green HRM methodologies impact employees across all sectors, despite the growing importance of sustainability initiatives (Bahuguna, Srivastava, & Tiwari, 2023). More research on Green HRM's impact on employees in other businesses is needed, even if studies in different sectors demonstrate that it has a favourable effect on environmental outcomes. The personnel is crucial to the success of every organisation, no matter what industry it operates in (Tuan, 2022). You may learn a lot about the possibilities of environmentally friendly HR methods by looking at how Green HRM practices affect engagement, job satisfaction, organisational commitment, and performance.
LITERATURE REVIEW
Madhavi Kulkarni (2020) The manufacturing process has undergone a sea shift with the advent of Industry 4.0. An integral part of this upsurge is digitalization, which is improving manufacturing efficiency, leading to higher-quality items, and facilitating the development of fresh, original business models. In developing countries like India, small and medium-sized businesses (SMEs) are vital because they provide jobs and income for millions of people. When it comes to developing and growing an economy, in particular, small and medium-sized businesses (SMEs) play a crucial role in a nation with a large population and plenty of workers. Within the fiscal year 2018–19, SMEs accounted for 49.6 percent of overall exports and 29% of the nation's gross domestic product (PIB Delhi, 2019). For that reason, they are often referred to be the driving force behind India's economic progress. But they haven't been able to compete in the global market in the digital age since they haven't upgraded or digitalized their technology. Data digitization's significance for India's SMEs is the main topic of this study. This article delves deeper into the potential benefits and drawbacks of a fully digitalized SME sector in light of current government initiatives such as Emerging consumer markets, E-Government, "Digital India," and "make in India".
Osibanjo Omotayo Adewale et.al (2013) The effects of company culture on HR policies and procedures at a few private institutions in Nigeria are detailed in this article. The statistical analysis, which was based on responses from 237 students at the private universities that were chosen for the study, shows that there is a strong correlation between company culture and factors like hiring practices, training programmes, performance reviews, salary administration, and employee satisfaction. Participants in the organization's beliefs, practices, and values will have a deeper understanding of each component, as stated in the report given the organizational setting of the research. To that aim, it is recommended that, prior to accepting employment offers, candidates should make an effort to understand the company culture.
Hema Mirji et.al (2023) Workers are a company's most valuable asset because of the expertise, experience, and insight they bring to the table. Therefore, the dedication and loyalty of employees are vital to the success and longevity of any organisation. Employee engagement amount of time and energy that a person puts into enthusiastic about the accomplishment of organizational objectives. The capacity to accomplish the intended outcome is related to the employee's performance. Companies that provide a pleasant workplace that values workers' ideas and encourages them to think creatively, have engaged workers who are willing to go above and beyond to achieve company objectives. In this article, we look at how company culture affects employee engagement and productivity.
Tewodros Bayeh Tedla (2016) Poor cultural integration within the business group and an ineffective organizational culture have a negative impact on organizational performance and shareholder return. The researchers in this exploratory case study set out to see how one business unit was able to boost productivity by instituting a new company culture. Organisational culture as proposed by Denison was the theoretical basis for this investigation. Twenty top managers from an Ethiopian company group underwent in-person interviews that were conducted semi-structurally. The chosen individual had to have worked for the business group for at least five years and have a track record of achievement in developing effective methods for building organizational cultures. The interview data must be reliable for the interpretations to be made were first coded, then transcribed, and last member verified. The results showed that employee-focused leadership helped motivate workers and that a clearly defined objective helped build mutual understanding between managers and staff. In their analysis of core business values, they found that self-regulated corporate social responsibility contributed to society's well-being. Business managers may use the study's results to enhance the lives of their workers and the local community, which might lead to economic development in the area. Additionally, the study's findings could help to social change by providing ideas for sustaining businesses.
Carlos Botelho (2020) Purpose Organisational culture and HR practices interact to enhance creative capabilities in organisations. This study tries to expand the existent theoretical and empirical understanding on these processes. Concept, procedure, and strategy Two waves of data collection were used to compile this study's sample of 75 firms. First, a survey measuring organisational culture, HR practices, and inventive capabilities was administered to the HR managers of those organisations. Secondly, we contacted the department heads of 36 out of the 75 firms to get more information. Through the use of structural equation modelling (SEM), the research model and hypotheses were examined. Findings Based on the findings, cultural attributes not only play a mediating role in the relationship between inventive capabilities and HR practices, but they also have a direct and substantial impact on the efficacy of these policies. It was also shown that in order to promote innovation in a synergistic way, it is important to think about both general and particular (innovation oriented) HR practices. Restriction of the study and its consequences We can't draw any conclusions about cause and effect from the data since it was obtained via a questionnaire at a particular moment in time. The study's findings have real-world applications because they give evidence that human resource management experts can use to build an HR practice system that boosts creative capacity in their organisations. Something new or valuable This research provides a list of practices that are explicitly focused at innovation and increases our knowledge of how HR practices impact innovation potential. It also shows how these practices have an incremental influence across organisational culture. Furthermore, it implies that decision-makers will reap the rewards of integrating various HR practices that are both general and innovation-focused. These practices will be most successful when integrated into highly effective cultural frameworks.
METHODOLOGY
A. Sample and data collection
An online survey was first issued to 912 hotels in Thailand, including Executives in human resources, hotel general managers, and establishments with three to five stars, in order to gather data for this research. In this research, the company level is used as the unit of analysis. As a result, we have an effective response rate of 41.12% (375 replies) out of 393 total responses, 18 of the hotels only had limited details. We utilized a five-point Likert scale to administer the sample questions, where 1 is for "strongly disagree" and 5 is for "strongly agree.".
B. Measurement
Green HRM is the term used to describe this approach. The fourteen-item GHRM scale was used by the author. "Recruiting and retaining individuals who possess the necessary expertise, character traits, and work ethic to adhere to environmental management principles;" was one of the example items. "Assembling environmental factors into the hiring procedure;" "In order to get people emotionally invested in environmental management, our company has integrated training;" The following statements are made by the firm: "Our company relates employees' workplace green behaviours to reward and compensation;" and "We use green performance indicators in our performance management system and appraisals."
Corporate environmental consciousness (GEC). The six-item GOC scale was used by the author. The following were some of the example items: "Our company offered practices for employees to participate in green suggestion schemes;" "Our company has a clear developmental vision, mission, and value to guide the employees' actions in the environmental management." and "Our company has environment-oriented policies in management and specific environmental tasks."
Innovative green services (GSI). Based on references [46,48], the author used a nine-item GSI scale. "Our company has frequently offered new practices in selling products/services for the environment;" was one of the example items. The following statements are made by our firm: "Our company has frequently innovated extends products/services based on its concern for the environment;" and "Our company has frequently offered new practices in developing new product/service for the environment."
How well a hotel's atmosphere performs... Items such as "Our company reduced overall costs;" were included in the sample. "Throughout the whole value chain process, our company managed to cut down on waste;" "By forming partnerships, our company was able to reduce its environmental impact;" and "It strengthened its position in the marketplace."
Table 1. Convergent validity results
Table 2. Structural model goodness of fit indices
RESULT
The study framework's hypotheses were tested using modeling using structural equations and confirmatory factor analysis.
A. Results of the measurement model
The findings of the dependability analysis are summarised in Table 1. In this research, the dependability of the model was tested using the Cronbach alpha, which varies from 0.874 to 0.923. There was sufficient reliability and consistency in the data, since all constructs had Cronbach alpha values more than 0.7. The average number recommended by less than 0.6, and all factor loadings are more than that. All four of the CR values—0.770, 0.863, 0.835, and 0.738—were more than 0.7. Indicates that the latent variable has validity at the convergent level when the AVE value exceeds 0.5. Using the construct reliability values and AVEs, we can see that each of the four constructs had an AVE of 0.565, 0.560, 0.717, and 0.587. All measures exhibited convergent validity, since each scale's AVE is more than 0.5. Suggestions of acceptability were used to evaluate the convergent validity of all conceptions. The results showed that the validity and reliability were satisfactory. Table 2 displays the goodness-of-fit indicators for the structural model. Everything is inside the permitted range, and the model was successful.
B. Structural model results
Based on the example of structural equation modelling, Table 3 outlines the consequences of components. Table 4 displays the structural model's findings, whereas In this study, the results of the whole model are shown in Figure 2. The total metrics for model fit are shown in Figure 2. structural equation modelling; the model is adequate with a GFI of 0.949, an RMSEA of 0.042, an NFI of 0.953, and a CFI of 0.960. Table 4 and Figure 2 show that there is no statistical significance between the two-Part coefficient estimations (H2 and H5). As seen in Table 4, this led to the confirmation of Hypotheses 1, 3, 4, and 6. Therefore, green service innovation acts as a go-between for eco-conscious corporate culture and the environmental impact of hotels. These results suggest that in order for businesses to improve their environmental performance, they need to innovate more green services.
Table 3. Causes and effects inferred from the structural equation model
Note: *p < 0.05.; **p < .01.
Figure 1. The results of the full model
Table 4. The results of the structural model
CONCLUSION
Green service innovation, green corporate culture, and green human resources policies' impacts on ecological footprint were the focus of this research. Based on the study's results and prior research on GHRM's effect on green organizational culture, this study's findings provided credence to the hypothesis model. Results from GHRM on ecological efficiency Environmental performance is impacted by green service innovation, which in turn is influenced by green organizational culture. Green service innovation also acts as a mediator between environmentally conscious company culture and performance, as has been shown by this study. According to the findings of this study, environmentally conscious HRM practices may lead to a more environmentally conscious company culture and, ultimately, more environmentally friendly service innovations.