TABLE OF CONTENTS
INTRODUCTION 1
1 GREEN BEHAVIOR IN ORGANIZATIONS 4
1.1 An Introduction to Green Business 4
1.2 Eco-friendly Organizational Culture 6
1.3 Characteristics of Employee’s Green Behavior 7
2 GREEN HRM AND ENVIRONMENTAL SUSTAINABILITY 10
2.1 Definition and Introduction of Green HRM 10
2.2 Definition and Introduction of Environmental Sustainability 13
2.3 Defining a Green Strategy in an Organization 16
3 INTEGRATION OF GREEN ELEMENT INTO HUMAN RESOURCE MANAGEMENT ROLES 18
3.1 Recruitment and Selection 18
3.2 Training and Development 18
3.3 Compensation and Rewards 20
3.4 Performance Management 20
3.5 Employee’s Relations 21
4 AN ANALYSIS OF GREEN HUMAN RESOURCE MANAGEMENT IN GORENJE 23
4.1 Presentation of the Company 23
4.1.1 Gorenje’s human resource strategy 23
4.1.2 Environmental protection and green practices of Gorenje’s Group 25
4.2 Empirical Part 28
4.2.1 Research aim and interview 28
4.2.2 Data collection and sample 29
4.2.3 Findings 30
4.2.4 Recommendations 46
ii
CONCLUSION 47
REFERENCES 49
APPENDIX
LIST OF FIGURES
Figure 1: Green Business Practices 5
Figure 2: Model for Employee Green Behavior 8
Figure 3: Four Meanings of the term Green 10
Figure 4: Green Strategy Principles 16
Figure 5 Organization of Gorenje Group 25
LIST OF TABLES
Table 1: Manager Positions of the Participans 29
Table 2: Key Findings from the Interview Process 45
i
INTRODUCTION
The concern for the natural environment began a long time ago. Throughout the previous two decades, the globe appealed for proactive ecological management. Environmental management interpreted by Rodriguez (2000, p. 23) as “sum of practice simple implemented by a particular society with the purpose to protect the environment” appeared to be a powerful arrangement tool for controlling the phenomena that could destroy mankind. The term eco-friendly or environmentally friendly is also widespread nowadays, relating to laws, activities, products, services etc., theatre having, minimal, reduced or not having negative impact on eco-systems and the environment (Webster, 2006). Environmental performance is the relationship between the organization and the environment. In broad terms, environmental performance indicate simple implementing practices that enable protecting of the environmental factors – soil, air, water, eco-systems (Bran, Radulescu & Ioan, 2011).
Current writing on environmental management (Chugan, 2015; Harris & Tregidga, 2012) recognizes that with a specific end goal to accomplish environmental sustainability objectives, associations can use proper human resource management practices to motivate their employees. To this end, incredible endeavors have been made to investigate what drives workers to participate in pro-ecologic practices that help their organization to turn green and be sustainable. Sustainability, on the other hand, is characterized as progression that addresses the issues of the current generations without undermining the capacity of future generations to address their own issues (United Nations General Assembly, 1987).
The term “green human resource management” is by all accounts an unfamiliar term to most of the people, including experts and academics in HRM. Green HRM is related to “all of the practices required for creating, usage and continuous maintenance of a system that is established with the purpose of making the representatives of a company green. It’s the part of human resource management that is involved with converting ordinary representatives into green representatives with the purpose of accomplishing the environmental objectives of the company, and lastly to make a commitment to being sustainable. It is related to the approaches, activities and frameworks that orient the workers of the company into the green movement for the benefit of the individual, society, natural environment and the business” (Opatha, 2013, p. 24). Without creating personal and integrating practical techniques, it is rather hard to turn the organization green. That is the reason why HR practices are a crucial segment of sustainable business development. The idea of sustainable development is focused on fostering economic progress and advancement while at the same time preserving the quality of the environment; it sets up a system for the incorporation of environmental policies and strategies for development (United Nations General Assembly, 1987).
According to Renwick et al. (2013), the integration of corporate environmental management into HRM is described as green HRM. They also stated that human resources aspects of environmental management are green human resource management. On other hand, green business is an
ii
association that focuses its work’s scope on the standards of sustainability, efforts to use renewable resources and strives to reduce the negative influence of its operations (Čekanavičius, Bazytė & Dičmonaitė, 2014). Additionally, a number of studies demonstrate that there is a connection among the green activities, organizational performance and corporate profitability within any association. Organizations which have higher scores on the environment indicators notice larger financial return than the overall market (Correa et al., 2008; Estampe et al., 2010).
The main purpose behind this thesis is to extend our understanding of how the concept of green management can be positioned as part of the human resource function. The motivation is to highlight the importance of building sustainable and eco-friendly business, and to gain knowledge of the outcomes after adopting Green human resource management in the organizations.
The objectives are:
Theoretical:
1. To study how human resource policies and practices could improve the environmental performance of organizations;
2. To study specific human resource philosophies, policies and/or practices that is concerned with environmental issues;
3. To changing attitudes and behaviors related to environmental issues in the workplace, as a result of human resource environmental approaches.
Empirical:
4. To investigate the green and sustainable practices which in the Slovenian white goods industry Gorenje operate.
5. To research how Gorenje’s human resource management encourages green business development.
The research questions are:
1. Which Green human resource practices Gorenje implements?
2. How Green practices increase the success and brand recognition of Gorenje?
Gorenje is the largest Slovenian producer of white goods (home appliances). With a market share of 4% and it is one of the eight largest producers of home appliances in Europe (official web site of Gorenje). With a persevering orientation on creating sustainable business, Gorenje supports activities that diminish the effects on the environment; strives to establish safe work environment; and to better the economic development of the local communities. A part of Gorenje’s global success is due to the sustainable and eco-friendly programs, and the successfully incorporated green human resource management practices.
iii
The first part is primarily based upon secondary data. For the purpose of this research, extant literature related to the topic from different data bases, websites and other available sources were collected. A systematic review of collected literature was done in detail. The objective of this paper is to indicate significant works on Green human resource management research, integrating environmental management and human resource management, and to group them so as to identify gaps, issues, and scope for further research. A literature review using an archival method is adopted as it enables us to structure research and to build a reliable knowledge base in this field.
The thesis is structured as followed: the first part is the literature review that is divided in three chapters. The first chapter analyzes the green behavior in organizations. This part explores the concepts of green business and eco-friendly organizational culture. The second chapter researches the link between the green HRM and environmental sustainability. The third chapter investigates the integration of green HRM into HRM roles. The second part, the empirical study adopts a qualitative approach. As an example of successfully incorporated green HRM, the case of Gorenje Company is investigated.
Our examination procedure incorporates arranging and classifying the writings in a process model format of human resource management (from entry to exit), using gathered publications from the last 25 years (1988 until 2013), as this is when works on the Green aspects of human resource management appeared in the published writing.
In order to learn more about the functioning and implementing of Green practices of Gorenje’s Group, interviews via mail were conducted with seven employees from the representative office in Slovenia. The interviews were conducted with employees from different managerial positions, in order to take into account the different approaches due to hierarchical position. The interviews are structured and personal. The purpose of the research interviews is to investigate the opinions, experiences, views and/or motivations of the respondents on specific matters. Qualitative methods, such as interviews, are believed to provide a ‘deeper’ understanding of social phenomena than would be obtained from purely quantitative methods, such as questionnaires. Interviews are, therefore, most appropriate where little is already known about the study phenomenon or where detailed insights are required from individual participants.
1 GREEN BEHAVIOR IN ORGANIZATIONS
1.1 An Introduction to Green Business
The thought of “green business” started to expand at the end of the XX century simultaneously with the continually growing concern about the sustainability of the economic development. While the starting points of the modern “green developments” are found in the middle of the 1960s, it took nearly twenty years for businesses to align with the “greening” inclines and integrate them into its
iv
value systems and to put effort to beget the term green business. Be that as it may, even now, the importance of the concept of green business is fairly understood as it’s shown by the numerous definitions existing in the literature. Moreover, green business practices are far from being widely spread and linked by business elements around the globe, with recognizable differentiations of the “green” activities across the regions. There are numerous reasons behind this. One is related to the fact that the pursuit of green business is still mostly considered as an extra burden (as far as cost increment or profit loss). The other is related to the country’s factors like the political, social, and monetary differences.
Brown and Ratledge (2011, p. 2) define the green business as “an institution that produces green output”. Makower and Pyke (2009), on the other hand, say that the green business demands a dedication towards financial gain, sustainability and humankind. The Business Dictionary states that the green business is “a business working in a way that has no harmful effects on the environment, the community, or the economy”, and also that “green business partake in creating approaches that include the pro-environmental issues and policies that affect the human rights” (Business Dictionary, n. d). Croston (2009) writes that the green organizations integrate more sustainable business activities than the rivals, enhance the natural environment and improve the living conditions, while profiting and adding to the economy.
Slovik (2013) suggests a correlation between the sustainable practices and the social commitment: “a “green business” is a business that utilizes renewable resources (environmentally responsible) and it is responsible for the HR part of their activities (socially responsible)”. Other researchers consider a different methodology, concentrating on the “green” component. They characterize green business as “business related to and encouraging environmentalism” and “business concerned with protection of the environment quality” (Green Times, 2013, p. 12). Cooney (2008) states that the green businesses make a persistent dedication to ecological standards in its business operations, as “businesses that develop a strategy and take steps to lessen its harmful effects on the environment” (Sustainable Green, 2013) and considerably more grounded, according to Calling Green (2011), as “a business whose practices doesn’t inflict negative effects on its surroundings”.
Establishing a green business is a versatile procedure. There are different activities that can be integrated and started when organizations need to move to a green conduct. In general, according to Kassaye (2001), an ecologically mindful organization ought to take a commitment to one of “4Rs” – reduction, reuse, recycle and recovery. All of the “Rs” may be accomplished by integrating a few applications, some of which may fill the need of multiple “Rs”. Figure 1-1 shows scheme of commonly used green business practices.
v
TABLE OF CONTENTS
INTRODUCTION ………………………………………………………………………………………………………. i
1 GREEN BEHAVIOR IN ORGANIZATIONS ……………………………………………………. iii
1.1 An Introduction to Green Business ………………………………………………………………….. iii
1.2 Eco-friendly Organizational Culture……………………… Error! Bookmark not defined.
1.3 Characteristics of Employee’s Green Behavior ………. Error! Bookmark not defined.
2 GREEN HRM AND ENVIRONMENTAL SUSTAINABILITY .. Error! Bookmark not defined.
2.1 Definition and Introduction of Green HRM …………… Error! Bookmark not defined.
2.2 Definition and Introduction of Environmental SustainabilityError! Bookmark not defined.
2.3 Defining a Green Strategy in an Organization ………… Error! Bookmark not defined.
3 INTEGRATION OF GREEN ELEMENT INTO HUMAN RESOURCE MANAGEMENT ROLES …………………………………………………. Error! Bookmark not defined.
3.1 Recruitment and Selection …………………………………… Error! Bookmark not defined.
3.2 Training and Development ………………………………….. Error! Bookmark not defined.
3.3 Compensation and Rewards …………………………………. Error! Bookmark not defined.
3.4 Performance Management …………………………………… Error! Bookmark not defined.
3.5 Employee’s Relations …………………………………………. Error! Bookmark not defined.
4 AN ANALYSIS OF GREEN HUMAN RESOURCE MANAGEMENT IN GORENJE ………………………………………………………………………… Error! Bookmark not defined.
4.1 Presentation of the Company ……………………………….. Error! Bookmark not defined.
4.1.1 Gorenje’s human resource strategy ………………… Error! Bookmark not defined.
4.1.2 Environmental protection and green practices of Gorenje’s Group ………… Error! Bookmark not defined.
4.2 Empirical Part ……………………………………………………. Error! Bookmark not defined.
4.2.1 Research aim and interview …………………………… Error! Bookmark not defined.
4.2.2 Data collection and sample ……………………………. Error! Bookmark not defined.
4.2.3 Findings ……………………………………………………… Error! Bookmark not defined.
4.2.4 Recommendations ……………………………………….. Error! Bookmark not defined.
CONCLUSION …………………………………………………………………. Error! Bookmark not defined.
REFERENCES …………………………………………………………………. Error! Bookmark not defined.
vi
APPENDIX
LIST OF FIGURES
Figure 1: Green Business Practices ……………………………………. Error! Bookmark not defined.
Figure 2: Model for Employee Green Behavior …………………… Error! Bookmark not defined.
Figure 3: Four Meanings of the term Green ………………………… Error! Bookmark not defined.
Figure 4: Green Strategy Principles……………………………………. Error! Bookmark not defined.
Figure 5 Organization of Gorenje Group ……………………………. Error! Bookmark not defined.
LIST OF TABLES
Table 1: Manager Positions of the Participans …………………….. Error! Bookmark not defined.
Table 2: Key Findings from the Interview Process ………………. Error! Bookmark not defined.

INTRODUCTION
The concern for the natural environment began a long time ago. Throughout the previous two decades, the globe appealed for proactive ecological management. Environmental management interpreted by Rodriguez (2000, p. 23) as “sum of practice simple implemented by a particular society with the purpose to protect the environment” appeared to be a powerful arrangement tool for controlling the phenomena that could destroy mankind. The term eco-friendly or environmentally friendly is also widespread nowadays, relating to laws, activities, products, services etc., theatre having, minimal, reduced or not having negative impact on eco-systems and the environment (Webster, 2006). Environmental performance is the relationship between the organization and the environment. In broad terms, environmental performance indicate simple implementing practices that enable protecting of the environmental factors – soil, air, water, eco-systems (Bran, Radulescu & Ioan, 2011).
Current writing on environmental management (Chugan, 2015; Harris & Tregidga, 2012) recognizes that with a specific end goal to accomplish environmental sustainability objectives, associations can use proper human resource management practices to motivate their employees. To this end, incredible endeavors have been made to investigate what drives workers to participate in pro-ecologic practices that help their organization to turn green and be sustainable. Sustainability, on the other hand, is characterized as progression that addresses the issues of the current generations without undermining the capacity of future generations to address their own issues (United Nations General Assembly, 1987).
The term “green human resource management” is by all accounts an unfamiliar term to most of the people, including experts and academics in HRM. Green HRM is related to “all of the practices required for creating, usage and continuous maintenance of a system that is established with the purpose of making the representatives of a company green. It’s the part of human resource management that is involved with converting ordinary representatives into green representatives with the purpose of accomplishing the environmental objectives of the company, and lastly to make a commitment to being sustainable. It is related to the approaches, activities and frameworks that orient the workers of the company into the green movement for the benefit of the individual, society, natural environment and the business” (Opatha, 2013, p. 24). Without creating personal and integrating practical techniques, it is rather hard to turn the organization green. That is the reason why HR practices are a crucial segment of sustainable business development. The idea of sustainable development is focused on fostering economic progress and advancement while at the same time preserving the quality of the environment; it sets up a system for the incorporation of environmental policies and strategies for development (United Nations General Assembly, 1987).
According to Renwick et al. (2013), the integration of corporate environmental management into HRM is described as green HRM. They also stated that human resources aspects of environmental management are green human resource management. On other hand, green business is an association that focuses its work’s scope on the standards of sustainability, efforts to use renewable resources and strives to reduce the negative influence of its operations (Čekanavičius, Bazytė & Dičmonaitė, 2014). Additionally, a
number of studies demonstrate that there is a connection among the green activities, organizational performance and corporate profitability within any association. Organizations which have higher scores on the environment indicators notice larger financial return than the overall market (Correa et al., 2008; Estampe et al., 2010).
The main purpose behind this thesis is to extend our understanding of how the concept of green management can be positioned as part of the human resource function. The motivation is to highlight the importance of building sustainable and eco-friendly business, and to gain knowledge of the outcomes after adopting Green human resource management in the organizations.
The objectives are:
Theoretical:
6. To study how human resource policies and practices could improve the environmental performance of organizations;
7. To study specific human resource philosophies, policies and/or practices that is concerned with environmental issues;
8. To changing attitudes and behaviors related to environmental issues in the workplace, as a result of human resource environmental approaches.
Empirical:
9. To investigate the green and sustainable practices which in the Slovenian white goods industry Gorenje operate.
10. To research how Gorenje’s human resource management encourages green business development.
The research questions are:
3. Which Green human resource practices Gorenje implements?
4. How Green practices increase the success and brand recognition of Gorenje?
Gorenje is the largest Slovenian producer of white goods (home appliances). With a market share of 4% and it is one of the eight largest producers of home appliances in Europe (official web site of Gorenje). With a persevering orientation on creating sustainable business, Gorenje supports activities that diminish the effects on the environment; strives to establish safe work environment; and to better the economic development of the local communities. A part of Gorenje’s global success is due to the sustainable and eco-friendly programs, and the successfully incorporated green human resource management practices.
The first part is primarily based upon secondary data. For the purpose of this research, extant literature related to the topic from different data bases, websites and other available sources were collected. A systematic review of collected literature was done in detail. The objective of this paper is to indicate significant works on Green human resource management research, integrating environmental management and human resource management, and to group them so as to identify gaps, issues, and scope for further research. A literature review using an archival method is adopted as it enables us to structure research and to build a reliable knowledge base in this field.
The thesis is structured as followed: the first part is the literature review that is divided in three chapters. The first chapter analyzes the green behavior in organizations. This part explores the concepts of green business and eco-friendly organizational culture. The second chapter researches the link between the green HRM and environmental sustainability. The third chapter investigates the integration of green HRM into HRM roles. The second part, the empirical study adopts a qualitative approach. As an example of successfully incorporated green HRM, the case of Gorenje Company is investigated.
Our examination procedure incorporates arranging and classifying the writings in a process model format of human resource management (from entry to exit), using gathered publications from the last 25 years (1988 until 2013), as this is when works on the Green aspects of human resource management appeared in the published writing.
In order to learn more about the functioning and implementing of Green practices of Gorenje’s Group, interviews via mail were conducted with seven employees from the representative office in Slovenia. The interviews were conducted with employees from different managerial positions, in order to take into account the different approaches due to hierarchical position. The interviews are structured and personal. The purpose of the research interviews is to investigate the opinions, experiences, views and/or motivations of the respondents on specific matters. Qualitative methods, such as interviews, are believed to provide a ‘deeper’ understanding of social phenomena than would be obtained from purely quantitative methods, such as questionnaires. Interviews are, therefore, most appropriate where little is already known about the study phenomenon or where detailed insights are required from individual participants.
2 GREEN BEHAVIOR IN ORGANIZATIONS
2.1 An Introduction to Green Business
The thought of “green business” started to expand at the end of the XX century simultaneously with the continually growing concern about the sustainability of the economic development. While the starting points of the modern “green developments” are found in the middle of the 1960s, it took nearly twenty years for businesses to align with the “greening” inclines and integrate them into its value systems and to put effort to beget the term green business. Be that as it may, even now, the importance of the concept of green business is fairly understood as it’s shown by the numerous definitions existing in the literature. Moreover, green business practices are far from being widely spread and linked by business elements around the globe, with recognizable differentiations of the “green” activities across the regions. There are numerous reasons behind this. One is related to the fact that the pursuit of green business is still mostly considered as an extra burden (as far as cost increment or profit loss). The other is related to the country’s factors like the political, social, and monetary differences.
Brown and Ratledge (2011, p. 2) define the green business as “an institution that produces green output”. Makower and Pyke (2009), on the other hand, say that the green business demands a dedication towards financial gain, sustainability and humankind. The Business Dictionary states that the green business is “a business working in a way that has no harmful effects on the environment, the community, or the economy”, and also that “green business partake in creating approaches that include the pro-environmental issues and policies that affect the human rights” (Business Dictionary, n. d). Croston (2009) writes that the green organizations integrate more sustainable business activities than the rivals, enhance the natural environment and improve the living conditions, while profiting and adding to the economy.
Slovik (2013) suggests a correlation between the sustainable practices and the social commitment: “a “green business” is a business that utilizes renewable resources (environmentally responsible) and it is responsible for the HR part of their activities (socially responsible)”. Other researchers consider a different methodology, concentrating on the “green” component. They characterize green business as “business related to and encouraging environmentalism” and “business concerned with protection of the environment quality” (Green Times, 2013, p. 12). Cooney (2008) states that the green businesses make a persistent dedication to ecological standards in its business operations, as “businesses that develop a strategy and take steps to lessen its harmful effects on the environment” (Sustainable Green, 2013) and considerably more grounded, according to Calling Green (2011), as “a business whose practices doesn’t inflict negative effects on its surroundings”.
Establishing a green business is a versatile procedure. There are different activities that can be integrated and started when organizations need to move to a green conduct. In general, according to Kassaye (2001), an ecologically mindful organization ought to take a commitment to one of “4Rs” – reduction, reuse, recycle and recovery. All of the “Rs” may be accomplished by integrating a few applications, some of which may fill the need of multiple “Rs”. Figure 1-1 shows scheme of commonly used green business practices.

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