Green HRM practices and environmental performance using the AMO model

Green HRM Practices Based on the AMO Model Abstract
This paper provides theoretical implications in the proper conceptualization of Green HRM based on the AMO model. The results of the empirical study found that Green motivation-enhancing and green opportunity-enhancing HRM are significantly positively related to environmental performance. however, no support was found for the relationship between green ability-enhancing HRM and environmental performance. Moreover, support was found for the proposed model of conceptualizing Green HRM practices based on the AMO model.

Track: Human Resource Management
Word Count: 5362

Introduction
The concept of environmental management is hinged on the need to preserve the environment and natural resources by directing human activities in such a way that they do not negatively affect the ecosystems. Improving human welfare for both current and future generations is the running theme in environmental management (Wagner, 2013). Environmental management entails administrative roles of crafting policies and on implementing and monitoring an organization’s environmental policy. Therefore, sustainable management means being able to deliver impressive performance on the financial front as well as ensuring that the environment is preserved for the current and future generations. It entails a responsibility to avoid any activities that degrade the environment and jeopardize a healthy and interactive coexistence of humans and other life forms.
If an organization is to achieve corporate sustainability along these lines, then the environmental policies designed for sustainability must be implemented through the so-called environmental management system (EMS). According to Wagner (2013), EMS is a set of green practices focused on the improvement of environmental performance. Environmental performance can be measured by using several indicators including low releases, minimization of waste, reduction of pollution and recycling efforts (Paillé, Chen, Boiral & Jin, 2014). Such performance can greatly be bolstered by implementing EMS policies like the ISO 14001 certificate requirements. The ISO guideline provides a basis for considering numerous aspects of managing businesses with an aim to reduce human impact on the environment. It concentrates on standards that can help the company adopt several environmental activities, including Green HRM practices (Daily and Huang, 2001).
The concept of Green HRM is relatively new in the HRM literature. Previous literature has contributed to our understanding to the concept (e.g. Stringer, 2009; Jabbour et al., 2010; & Berrone and Gomez-Mejia, 2009). It is primarily focused on making all employees “green” in order to make it easy for an organization to meet its environmental obligations. It is hoped that once such obligations are met, it is easy for all members to facilitate the attainment of a sustainable environment. Accordingly, the concept “Green HRM” can be defined as a set of specific HRM practices and policies that enable and sustain a proactive approach to environmental management and the achievement of performance outcomes in relation to environmental sustainability and other types of business objectives (Renwich et al., 2013). The focus and aim of green HRM is to make every employee sensitive to environmental issues so that each of them can contribute towards non-polluter, preservationist, maker and conservationist roles (Opatha & Arulrajah, 2014). It is important to consider several internal resources including human resource issues related to employees and their role in creating sustainable environmental policies (Guerci, Longoni & Luzzini, 2016).
Green HRM has been at the forefront since the 90s in championing for environmental preservation. The available literature suggests that there is a significant relationship between the HRM efforts over the years and the environmental performance of organizations. For instance, when an organization hires employees who are sensitive to environmental issues and have skills for implementing environmental management, compensates staff for green performance, or even trains such employees on environmental concerns, performance indicators will be significantly high.
Although the link between Green HRM and environmental performance has been examined in previous research, this study added to the literature a more comprehensive framework for the conceptualization of Green HRM. In particular, by building upon the AMO framework developed by Applebaum et al (2000) and the work of Renwick et al. (2013), this study conceptualizes Green HRM practices as practices that develop green abilities (e.g. using green hiring), motivate green employees (e.g. provide incentives for environmental improvements), and provide green opportunities to contribute (e.g. use teamwork to solve environmental problems) to green initiatives within the company (Guerci et al., 2015). Although this conceptualization is implicit in much previous research, our conceptualization of Green HRM is original in explicitly stating the main Green HR practices that are included in the system.
This paper contributes to the existing literature in its attempt to validate the model that conceptualizes Green HRM practices based on the AMO model. By doing so, it adds to existing research that empirically examines to what extent each component of green HRM influences environmental performance. Theoretical Background The relationship between green HRM and environmental performance
There are a number of observations that highlight the role of HRM in enhancing green performance. Following the strategic perspective in HRM, there is an agreement in the literature that when employees of an organization possess high skills in matters of environmental preservation, the performance of the organization along environmental issues is likely to be high (Guerci et al., 2015). Specifically, the behavior of employees within the company are largely influenced by a set of Green HR practices that facilitates proactive environmental practices (Paille et al., 2014) and contributes to environmental performance (O`Donohue and Torugsa, 2016).
The concept green HRM is best expressed by the review work of Renwich et al (2013) when they define HR practices in the Green HRM system based on the AMO framework. In specific, Green HR practices can be classified into three groups of practices: developing green abilities, motivating green employees, and providing green opportunities (O`Donohue and Torugsa, 2016). Generally speaking, Green HRM practices are meant to identify and nurture environmental sensitivity among employees. It also seeks to empower them to make environment savvy decisions in ambiguous circumstances. By adopting these practices, employers have a chance to: (1) implement branding as a strategy to attract staff that desire high level of environment performance; (2) recruit people with common environmental considerations for their employer; (3) provide sufficient training to prepare staff to align to organizational environmental goals, and (4) involve and engage employees in green issues (Guerci et al., 2015; Liu and Xie, 2013; O`Donohue and Torugsa, 2016). In the words of O’Donohue and Torugsa (2015), many authors are in agreement that workers or “employees with ‘green’ environmental values, technical capabilities, and managerial skills, and who feel valued, are highly motivated and engaged in their work, are fundamental to proactive adoption and enactment of the principles of environmental sustainability.”
HR practices that are based on “developing green abilities” are linked to HR practices such as employee hiring and training. In particular, practices such as green employee hiring provides the company with highly capable employees with regard to environmental issues (Guerci et al., 2016). The authors describe green hiring as “hiring employees with specific environmental competences and with general sensitivity toward the environment” (Guerci et al., 2016). Previous research has argued that companies should hire employees who are more environmentally sensitive and those who possess higher environmental competencies (Bret Becton, et al. 2008). Bauer, Erdogan, and Taylor (as cited in Guerci et al., 2016) are also of the opinion that if firms are to further enhance their performance on the environmental front, they must hire persons who have a high degree of sensitivity on environmental conservation issues. Such persons come equipped with the willingness to engage in activities that happen to be related to the environment. Green training, which Guerci et al., (2016) term as “assessing employee performance by considering green behaviors and rewarding those behaviors”, is also important in to enhance employees’ environmental knowledge and skills (Longoni et al., 2014) and to better identify and solve environmental problems (Jabbour and Santos, 2008). Green training is shown to be one of the most implemented practices in green HRM (Guerci et al., 2016). This is an assertion supported by Daily and Huang (as cited in O’Donohue and Torugsa, 2015). In this case, training is identified “as being key to effective proactive environmental management…” (O’Donohue and Torugsa, 2015). According to Guerci et al., (2016), there are two reasons that can be advanced to explain such a scenario. If employees are equipped with values that will help them align to the organization’s environmental performance, they are also encouraged to follow the rules laid out by the organization. Secondly, interventions such as employee hiring and training that bolster ability help to improve the competencies of employees so that they can follow and understand the rules and the standards of the organization. Because these interventions carry both value and compliance programs, HR practices that are based on ability are more likely to work. Consequently, these practices tend to enhance the benevolent performance surroundings for the environment in an organization (Guerci et al., 2015). It is important to note that as a consequence of green hiring and training, employees develop the ability to not only highlight environmental concerns, but also the ability to embrace the most appropriate course of action in seeking to fix the concerns highlighted.
Green HRM practices that focus on “motivating green employees” are important factors in enhancing employee sensitivity to environmentally sensitive behaviors and the overall environmental performance of an organization. Organizations can introduce a range of practices to encourage employees to pursue environmentally savvy courses of action, take responsibility for outcomes emanating from such decisions and prioritizing environment related factors over others (Graham, et al., 2016). For example, green performance management and compensation can induce employees’ motivation towards environmental issues (Guerci et al., 2016). In basic terms, green performance management (GPM) has got to do with the evaluation as well as assessment of the performance of employees in the environmental management process (Tang, Chen, Jiang, Paille, and Jia, 2018). As a matter of fact, Daily and Huang (as cited in O’Donohue and Torugsa, 2015) identify rewards (alongside training and the support from the senior management) as being one of the key considerations when it comes to proactive management of the environment. In particular, integrating environmental issues in the performance appraisal process increases employee understanding about the role they play in the company regarding environmental issues and enhances their willingness to adopt environmentally friendly behaviors (Bret Becton et al., 2008). Present research indicates that there are positive outcomes associated with the formulation of green targets for staff. On this front Tang et al. (2018 propose the establishment of “a series of green criteria for all members in performance appraisals, covering topics such as environmental incidents, environmental responsibilities, reduction of carbon emissions, and communicating of environmental concerns and policies.”
One of the reasons why employees engage in unsafe behavior about environmental conservation is that they think the gains outweigh other considerations. This is especially true in cases where it is the organization that bears the brunt for such choices. Green HRM practices based on motivation intended to intervene and deal with environmental performance in organizational set up. They help to increase the perceived costs of environmentally insensitive behaviors by employees. They impose sanctions and punish negative behaviors. On the positive side, they seek to reward a good environmentally sensitive behavior that employees may pursue (Guerci et al., 2015). The application of reward and punishment system that is tied to environmental management represents an example of compliance based programs because organizations provide specific sets of rules and guidelines that require all employees to follow. The outcome of these programs are that employees will not only desist from engaging in unsafe environmentally insensitive behavior but also see that the costs of such behavior far outweigh the benefits at both individual and organizational levels. On the other hand, rewarding programs are typically value-oriented. Rewards encourage staffs to pursue environmentally safe options because everyone will desire rewards. The recognition that goes with it is also encouraging. It encourages workers to pursue safe options. Owing to the fact that these programs function as both value and compliance oriented initiatives, it is expected that green HRM based on motivation enhancement will: (1) boost principled, ethical and benevolent performance practices aimed at conserving the environment; and, (2) decrease environmental performance that tends to be egoistic in organizations (Guerci et al., 2015; Daily et al., 2011).
HR practices that “provide green opportunities” are essential elements in advancing environmental performance of organizations. They provide workers with a firm technical possibility to pursue environmentally safe behaviors (Guerci et al., 2015). More specifically, as Renwick, Redman, and Maguire (as cited in Tang, et al., 2018), point out, “employees can be provided with opportunities to participate in environmental management, which stimulates them to support the prevention of pollution and identify environmental opportunities.” This is more so the case given that as (O’Donohue and Torugsa, 2015) point out, many organizations are adopting a more proactive (as opposed to reactive) approach to environmental management approaches. These approaches, as the authors further point out, are “initiated voluntarily with a strategic purpose that extends beyond compliance and mitigation to enhance firm performance through emphasis on prevention of waste, reduction in energy consumption, and product and process innovation” (O’Donohue and Torugsa, 2015). Negative organizational or social context is also a hindrance to employees who wish to pursue environmentally safe behavior. If colleagues show opportunistic tendencies, employees keen on pursuing environmentally safe options may be slowed down or even discouraged. There should be effort by organizations to improve organizational and social context in which the motivation of HRM initiatives are instituted. If that is done, workers will be allowed to operate in an environment that is free from fear of the possible negative implications from their allegiance to safe environmental options. Initiatives that are driven by opportunity come in three dimensions, i.e. designing open strategies to pick out safe environmentally sensitive behavior such as blowing the whistle on infringements and violations of the laid-out standards or rules, or even conducting surveys, creating mechanisms for passing organizational intention to pursue green initiatives and creating structures for environmental performance by individuals within an organization (Klassen, 2001; Guerci et al., 2015). Accordingly, green HR practices that provides green opportunities, such as green involvement, are necessary to create a context in which employees can engage in environmentally-friendly behaviors (Dubois and Dubois, 2012). More specifically, in the words of Guerci, et al. (as cited in Dubois and Dubois, 2012), “green involvement practices provide employees with the opportunity to use their green knowledge and abilities and, thus, to improve the firm environmental performance.”
Consistent with the above discussion, we argue that green HRM practices that are implemented within the companies to support its EMS have a direct and positive impact on environmental performance. there is little research that focus on individual dimensions of Green HRM based on the AMO model (e.g. ), and no attempt has been made to empirically Research studies examining the Green HRM and performance link are few and relatively new (Daily at al., 2007; O`Donohue and Torugsa, 2016; Guerci et al., 2016). This study hypothesizes that green ability, green motivation, green opportunity HRM positively influence environmental performance. Thus, we propose the following three hypotheses: H1: there is a positive relationship between green ability HRM practices and environmental performance H2: there is a positive relationship between green motivation HRM practices and environmental performance H3: there is a positive relationship between green opportunity HRM practices and environmental performance The below figure (Figure 1) represents the research model of the current study. It shows the hypothesized relationships that is discussed previously and that represent the main aim of the current study.

Figure 1: The Research Model
Green Ability-enhancing HRM

H1
H2 Green Motivation-enhancing HRM

Environmental Performance (EP)


H3 Green Opportunity-enhancing HRM

Methods Sample and Data Collection A self-administered survey was carried out of companies that operate in the Qatari Oil and Gas sector. A structured questionnaire with closed questions was sent to the company`s management team. Managers were chosen because they have the responsibility to apply managerial activities particularly HR practices, as well as their knowledge of and participation in environmental issues that concerns the application of green practices.
Of the 300 questionnaires that were distributed among all companies, a total of 144 completed questionnaires were collected and used in the analysis, corresponding to a response rate of about 48 percent. In terms of organizational characteristics, all companies that agreed to participate in this study are large companies that employ more than 500 employees, and about 86% of the companies participated are publicly owned. For personal characteristics of respondents, the majority of respondents are male (a percentage of 7) hold at least a first-degree education (a percentage of 97.2), and more than 40 percent of them are working in the company for more than 10 years. Green HRM Measures The questions used in the survey were drawn from several previously published and validated scales, after modifying them to fit the context of the current study. The set of practices included in the Green HRM were chosen based on the AMO model (Macky and Boxall, 2007). As mentioned previously, according to this model, the components of any HRM can be determined as a set of practices that are aimed at enhancing employee’s ability, motivation, and opportunity to contribute to performance (Obeidat et al., 2016). By applying this on the green HRM, we included 11 items to measure Green HRM practices. The items used were taken from Jabbour et al (2010) study. In particular, 4 items were used to measure to what extent their companies adopt Green ability-enhancing HRM practices (a sample item is “The company has a continuous environmental training program”. Another 4 items used to measure green HRM practices that improve motivation (a sample is “Our company provides individual financial incentives for EMS improvements”), and 2 items to measure opportunity-enhancing HRM (a sample is “Our company frequently use EMS teamwork to solve EMS problems”).
Environmental performance is measured via a scale adapted from previous study (Paille et al., 2013). Respondents were asked to indicate to what extent their companies were able to achieve a set of environmental performance indicators, for example “Our company reduced environmental impact by establishing partnerships.”.
Finally, control variables were included particularly, company size and ownership structure because of their potential effects on environmental and organizational performance (Paille et al., 2013). Analysis and Results In order to find the study results, Smart PLS was used. In the first stage, multiple checks for validity and reliability was performed. Confirmatory factor analysis (CFA) was conducted to specify causal relationships between the observed variables and the underlying theoretical constructs. As can be seen in Table 1, most of the item loadings can be considered as high (i.e. item loading is greater than 0.6), with some moderate item loadings (i.e. item loading is greater than 0.4). A general rule of thumb, factor loading greater than 0.3 is considered to meet the minimum level and the variable is relevant for the particular factor (Hair et al., 2005).

Table 1: Measurement properties of reflective constructs

Reflective construct
Indicator
Item
Loading
CR
AVE
Cronbach Alpha

Ability-enhancing Green HRM A candidate’s environmental motivation is verified during all of the selection stages (application completion, interview, etc.) The company has a continuous environmental training program. Environmental training is a priority when compared to other types of company training. Environmental training is viewed as important in our company 0.80

0.81
0.78

0.83
0.88
0.64
0.82

Motivation-enhancing Green HRM Employees in our company are rewarded for making suggestions for improvement on EMS. Our company provides credit to people when they work on EMS improvements Our company establishes environmental objectives that each employee must accomplish. An employee’s contributions to environmental management improvement are evaluated by the company. 0.62

0.42

0.86

0.90
0.80
0.53
0.70

Opportunity-enhancing Green HRM
· Our company frequently use EMS teamwork to solve EMS problems.
· Employees in our company attend team meetings on EMS frequently.
0.83

0.88
0.85
0.73
0.64

Environmental performance
· Our company reduced waste and emission from operations.
· Our company reduced the environmental impact of its products/ services.
· Our company reduced environmental impact by establishing partnerships.
· Our company reduced the risk of environmental accidents, spills, and releases.
0.74
0.83

0.82

0.76
0.87
0.62
0.79


Different measures of reliability were also conducted. Particularly, values of composite reliability (CR), Cronbach`s alpha, and the average Variance extracted (AVE) were calculated. The results can be seen in table 1 and it shows that the study constructs meet the reliability tests. According to the literature, the acceptable value of CR is 0.8, for Cronbach`s ? is 0.70, and AVE is 0.5 (Hulland, 1999). Reliability measures for opportunity enhancing HRM were adequate, except for the value of Cronbach`s alpha that was below the acceptable value. This is acceptable since CR and AVE values show acceptable measure of reliability.
Tests for discriminant validity were also performed. Discriminant validity shows the degree to which the items of different constructs are unrelated. Two approaches were used to measure discriminant validity, which are: the Heterotrait-monotrait ratio of the correlations (HTMT) and Fornell-Larcker criterion. Researchers suggested a threshold not exceeding the value of 0.85 for HTMT (Kline, 2011). Moreover, the Fornell-Larcker criterion is met if the AVE by a factor is greater than the variance shared between the construct and other constructs (Fornell and Larcker, 1981). From the results of discriminant validity tests, we can conclude that discriminant validity is achieved.
Table 2 presents the Mean, Standard Deviation (SD), and correlations among variables in this study. The results shown in this table provides meaningful information. Firstly, the mean values of Green ability-enhancing, motivation-enhancing, and opportunity-enhancing HRM practices are high: 5.08, 5.16, and 5.07 respectively. This indicates that participated companies adopt the Green HRM practices to high level. Secondly, environmental performance is perceived to be high in participated companies, with mean value of 5.70. Finally, correlations values among the study constructs are significantly positive, and are highly correlated.

Table 2: Descriptive statistics and Correlations

Variables
Mean
SD
1
2
3
4

1.
Green Ability-enhancing HRM
5.08
0.87
1




2.
Green Motivation-enhancing HRM
5.16
0.75
0.59***
1



3.
Green Opportunity-enhancing HRM
5.07
1.02
0.48***
0.51***
1


4.
Environmental Performance
5.70
.62
0.22**
0.40***
0.39***
1

Note: * p < .05, **p < .01, N = 144



In order to identify any multicollinearity problem, the variance inflation factor (VIF) and tolerance value were calculated for the study constructs. The acceptable cutoff point for the VIF is that the value should not exceed 10, while the tolerance value should not be less than 0.10 9Pallant, 2005). Results of multicollinearity test showed that multicollinearity is not a problem among the constructs, as shown in table 3. In particular, values of VIF and tolerance are within the acceptable level.

Table 3: Test of Collinearity


Independent variables
Tolerance
VIF

Green Ability-enhancing HRM
Green Motivation-enhancing HRM
Green Opportunity-enhancing HRM
0.48
0.46
0.63
2.08
2.18
1.59

Dependent variable: environmental performance



In the second stage of analysis, PLS was performed in order to test the study hypotheses. Test of path coefficients provides results of the hypothesized relationships in H1, H2, and H3. As can be seen in Table 4, results showed a significant and positive link between Green motivation-enhancing HRM and environmental performance (? = .52***, t = 5.04). Also, a significant and positive relationship exists between Green Opportunity-enhancing HRM and environmental performance (? = 0.25**, t = 2.81). however, the relationship between green ability-enhancing HRM and environmental performance was not supported (? = -0.12, t = 1.16). According to these results, both H2 and H3 are supported, but H1 is not supported.


Table 4: Test of Direct Effects


Direct Effect
? Value
t Value

Green Ability-enhancing HRM Environmental Performance
Green Motivation-enhancing HRM Environmental Performance
Green Opportunity-enhancing HRM Environmental Performance
-0.12

0.52***

0.25**
1.16

5.04

2.81

Note: ***p<.001, **p<.05, N = 144




Discussion and Implications
The results of this study provided adequate evidence for the hypotheses formulated in the research model. It confirms the existence of a positive and significant links between the Green motivation-enhancing HRM and environmental performance and between green opportunity-enhancing HRM and environmental performance. However, the relationship between Green ability-enhancing HRM and environmental performance is not confirmed.
Regarding the positive impact of Green HRM (motivation-enhancing and opportunity-enhancing HRM) on environmental performance, the study results provide good support. In particular, the results show that the adoption of green HRM practices (practices that develop green abilities, motivate green employees, and provide green opportunities) in the companies that operate in the enables them to improve their environmental performance. The results are consistent with previous arguments of the value of adopting green HRM (Muster and Schrader, 2011; Daily et al., 2007; Daily and Huang, 2001) and are in line with previous research findings in other contexts (e.g. O`Donohue and Torugsa, 2016; Guerci et al., 2016). This is an important finding since it shows that green HRM practices are also needed to be implemented in companies that operate in the oil and gas sector as part of its EMS plan to improve its environmental performance. The AMO framework helps provide better categorization of the Green HRM system by reflecting upon the three dimensions: Green HR practices that improves ability, green HR practices that enhances motivation, and green HR practices that provides employees the opportunity to contribute to environmental issues. This study is one of the few that used this categorization as a basis for identifying the green HRM components (e.g. O`Donohue and Torugsa, 2016).
The results of this study did not provide support for H1 that green ability-enhancing HRM is not significantly positively related to environmental performance. This result is not consistent with previous research that argue for the value of implementing green ability-enhancing HRM (e.g. Renwick, et al. 2012). However, although this result is surprising, it is consistent with previous empirical finding. In particular, Guerci et al. (2016) found that green hiring is not associated with environmental performance. As per Guerci et al. (2016) findings, a conclusion could be made to the effect that hiring employees who are environmentally aware and training them on environmental issues does not guarantee environmental performance. Further research is needed in order to investigate this particular relationship in different context.
The findings reported in this study have practical implications. For managers in the Qatari Oil and Gas sector who seek to optimize their company`s environmental performance, the findings clearly indicate the benefit of adopting effective green HRM practices, particularly green motivation-enhancing and opportunity-enhancing HRM. It is well articulated in the previous research that the establishment of EMS can enhance the business ability to control and avoid environmental problems (Dialy and Huang, 2001). This is especially important for companies that operate in the Oil and Gas sector, where environmental issues are vital.
The finding of this study should be interpreted in light of its limitations. A first limitation relates to the cross sectional nature of the study. Future research on this area should attempt for a more longitudinal research. Another limitation relates to how variables are measured based on self-report. In particular, managers who participated in this study were asked to provide their perception regarding the study construct. Future research should attempt to rely more on objective measures to validate the findings. Moreover, this study attempt to validate the conceptualization of green HRM based on the AMO model and the effect of different practice on environmental performance only without considering possible contingent effect of a variety of factors (e.g. corporate culture, business strategy, and the support from top management) on this relationship. Future research should look at the whole picture of the green HRM and environmental performance link by incorporating different variables that affect this link. As a final limitation, the study context is limited to one sector and one country thus makes the generalizability of findings limited. Future research can focus on examining the study model in different contexts.

Conclusion
To conclude, the findings highlight the significant role of the adoption of green HRM practices (practices that develop green abilities, motivate green employees, and provide green opportunities) in improving environmental performance. The AMO model helps in conceptualizing Green HRM practices that are vital to achieving environmental performance.

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