Human Resource Management

Human Resource Management Management School, University of Sheffield Green (Environmental) HRM (C) D Renwick

Green HRM Processes:Recruitment • Green/EM (Environmental Management) job descriptions for employees • And green goals included into managerial job descriptions • Graduate perceptions of EM practises (use of Green criteria) • Green job candidates use Green criteria when applying for jobs • Recruitment of employees who are ‘Green aware’ • becomes part of the interview schedule (C) D Renwick

Green HRM Processes:Recruitment • Green employer branding (green employer of choice) • Green intro. to inductions (familiarisation) • e.g. Health & Safety • Becoming a green employer may produce other HR benefits, such as: • increased staff motivation and/or engagement • reductions in labour turnover and • increasing workforce health (CIPD research) (C) D Renwick

PMA - Performance Mgmt. & Appraisal • Green performance standards & indicators in PMA at all dept. levels • Communication of Green schemes for all via procedures/auditing to all levels in PMA scheme, est. firm-wide dialogue on green matters • Managers are set green targets, goals and responsibilities • Roles of managers in achieving Green outcomes included in appraisals (e.g. familiarisation, & encourage EM learning) (C) D Renwick

PMA - Performance Mgmt. & Appraisal • Green standards for all dept’s in on-site use, waste mgmt./reduction (e.g.’s EG&G, Kodak, BFI) • Mgmt. appraisals assess no. of green incidents, use of environment responsibly, & successful communication of environmental policy • Penalties for non-compliance on targets in EM • Link EM in PMA to Pay & Reward, stop EM as a ‘fad’ (C) D Renwick

Training & Development (T&D) • Train front-line teams to analyze their work areas in EM • Train to > staff concern for & emotional attachment to EM impact • Integrating EM training, & processes/material use, use TNA in EM • Integrating training on instruction and generation of eco-values • Development of employee skills, and competence building in EM • Socialisation in Green values/management, use of Green teams in EM • Train staff to produce green analysis of workspace (C) D Renwick

Training & Development (T&D) • Job rotation to train green managers of the future • Integrating training to increase staff knowledge in EM • Use discussion packs (GEC), suggestions, interactive media (ICI) as tools for EM training • Training in EMaspects of safety, energy efficiency, waste management, & recycling / Safety rep’s to give data on green courses • Develop Green personal & tacit skills, & knowledge in EM (C) D Renwick

Training & Development (1) • Re-train staff losing jobs in polluter industries (union role) • EM affects job skills, so union role here • Employers to develop EM training/skills in renewable sector(e.g. T&G at Mill Chemicals) • Union rep’s need time to attend Green training • Unions include EM in training of union activists(e.g.’s T&G, AMICUS, TUC, TUSDAC) (C) D Renwick

Training & Development (1) • Lack of take-up in training/education in EM • Low level of management eco-literacy (hence IEM, UN, & UK courses in EM, and this topic being taught to you today! • Line managers enact Green “learning cascade” (Rover Group allocated 350 working days to such an initiative) • Educate & train employees in EM business practices(CIPD/KPMG) • HR at E.ON/first direct are seen to be key to embed an EM culture (C) D Renwick

Training & Development (2) • Theory: Advanced EM ispeople intensive, meaning needs employee development to increase tacit skills in EM • Need to broaden EM specialists into managers(e.g.’s DuPont, Unisor Sacilor), but how to do this is problematic • EM problems are complex, so knowledge is important to understand & utilise (e.g. mobile phones, pollution in 14 production areas!) (C) D Renwick

Training & Development (2) • Challenge is to install eco-values as there are few models out there to support eco-investment (similar issues to HRM & Org. Perf. case) • Few Green courses at Universities – poses recruitment issue for some firms, e.g. those in ‘clean coal’ such as Babcock • EM focus on developing personal skills/team-building in global firms • Unions want sustainability included into apprenticeships (e.g.’s AMICUS, T&G). (C) D Renwick

Training & Development (3): E.g. Kent County Council (KCC) KCC faces barriers to increased ownership in EM: • Lack of commitment/will by seniors • Cynicism of importance/relevance of issues • Lack of resources/time • Green fascism/policing • New bureaucracy • Cost constraints • Communication/mentoring issues • Lack of training • Knowledge gaps (C) D Renwick

Training & Development (4):KCC (1) KCC faces problems such as: • Few staff being trained effectively • Green teams view other staff not resp. in EM • Staff give token response/hostile rejection to EM • Difficult to maintain EM due to other priorities KCC is scoring some success, such as: • Est. EM onto dept agendas, plans & projects • Embracing EM agenda (achieving culture change) • Helping dept’s to gain access to funding • Implementing programmes in EM (like water/energy efficiency, green purchasing, < paper consumption, transport & waste, promoting resource efficiency. (C) D Renwick

Training Needs Analysis (TNA) • Is useful to assess training required in EM (what Green knowledge & skills staff need) • Options include using specialists or survey staff • Org’s may est. firm EM training committee to alert managers that EM is imp. & has resources dedicated to it, e.g. Duke Power, & combine knowledge categories (contextual processes/intra-org) to develop less toxic cleaners - e.g. NUMMI But problems here include: • Extra work for operations mgrs/workers (new rules/ restrictions); ensuring mgrs release staff for EM training; integrating training into PMA; gaps in mgmt decisions/branch performance (technical inadequacy, ignorance, mis-use of time), e.g. ESB (C) D Renwick

Employment Relations • Employee Involvement & Participation (EI&P) in EM suggestion schemes/problem-solving circles (encourages concern/applies skills) • Staff independence to form & experiment with green ideas • Integrate EI&P to EM - productive maintenance (cleaning, greasing) • Employee help-line for guidance in Green matters • Tailor Green EI scheme to industry/firm standards (esp. SMEs) • Increase line/supervisory support behaviours in EM (C) D Renwick

Employment Relations • Unions EM agreements(TUSDAC)train union rep’s(GMB, T&G) • Green elements into Health & Safety, < exposure to fumes/chemicals • Encouraging U.K. employees to use green transport(CIPD/KPMG) • Set-up low carbon champions (CEO/Board) e.g. E.ON, < footprints • Introduce EM whistle-blowing help-lines, EM grievance & discipline procedure, dismissal for EM breaches (& U.K. legal position) • Use/develop social capital in EM, networks, resources (e.g. NUMMI) (C) D Renwick

Employment Relations (1) • EI&P to cut waste, as employees have: • the most knowledge of work processes/products, • can manage such complex work well, and • doing so builds their pride & commitment to work, e.g. SMEs • EI&P to < pollution, and > revenue • Problem is mgmt record is low on linking EM to H&S • EI to motivate workers in EM (detect leaks), & to develop worker EM schemes (recycling), e.g.’s Argos & first direct (C) D Renwick

Employment Relations (1) • Barriers to > EI in EM: • Lack of management support for EM (e.g. Rover/KCC/Accenture) • Unions may lack access to EM information, and education, & training in EM – all of which undermine union bargaining power • Workers may not see EM as an issue ‘for them’, unlike pay which may be a more direct concern (C) D Renwick

Employee Relations (ER)/Involvement (EI) Firms may use EI to generate revenue & reduce pollution: e.g. 3M, (2,500 solutions/waste release halved/saved $300m, & later estimates of 4,750 projects globally/preventing £1.7bn of pollution/ saved $850m pollution control/raw material costs) e.g. American Airlinesflight attendantsrecycled 616,000 pounds of aluminium cans (gain of $40,000) e.g. Dow Chemicals 173% ROI in 1st year. Other examples include schemes at Chrysler/Jeep, AT&T, Wheeling-Pittsburgh Firms may establish firm policies to support employee eco- initiatives, & use supervisors to support employee EM actions: e.g. GE Plastics, Lucent Technologies, Neste Oy (C) D Renwick

Employee Involvement (EI) (1) Firms may use EI as it can motivate workers in EM, by: • Allowing them to detect leaks in production processes • Increase team knowledge of causes of waste, & how to reduce these (as this is delegated to them). E.g’s: • Chrysler/Jeep (recycling) • AT&T (waste disposal) • 3M/Kodak/DuPont/Procter & Gamble (all waste reduction) • See gains from EI in improvements in EM & workers H&S, & the development of more knowledgeable employees/supervisors in EM as a whole • Est. & use worldwide Green forums to share info. Re. EM processes, &/or offer help-line for staff - e.g. Cable & Wireless (C) D Renwick

Union Role • Unions may act as allies to Environmental Managers (EM’s) to generate self-directed Green initiatives from workers, e.g. NUMMI & Dunlop • Campaign in EM to incl. co-operation with green groups, & focus on H&S concerns re. Hazardous/damaging substances & refusal to handle toxic waste - e.g. Unions & Greenpeace • Seek legal rights for workers to paid time-off to attend training in EM, & be informed of outcomes on monitoring discharges/emissions (C) D Renwick

Union Role Employers may encourage union members to be involved in Green programmes, e.g. Sony, who do this to < glass defects/waste glass & < energy use Be reluctant to involve unions in EM as they see EM as a mgmt issue (e.g. U.K. CBI oppose mandatory Green audits/union role in them, & see them as tools for mgmt control/assessment) (C) D Renwick

Jobs & Employment Unions may be caught in contradiction of looking to support staff on opposite sides of EM conflicts: • e.g. Welsh dockers refusing to handle toxic waste were represented by the same union as others at incineration plants asked to dispose of such waste! • Jobs growth may occur from focus on EM, e.g. DTI see future for power/wind generation & EM control systems • U.K. forecasts – up to 1,000 skilled jobs from using wind technology, & 10 jobs per megawatt of renewable power used • 30,000 jobs forecast in UK renewables sector before 2015, & job gains from using bio-mass too (C) D Renwick

Jobs & Employment (1) Recycling: May have created 35-78,000 new U.K. jobs by 2010, & complex schemes may create more skilled employment than landfill • e.g. DTI, estimate up to 35,000 working on ‘green’ jobs in UK by 2020! Areas of job growth related to EM include: • In the energy industry (up from 8k in 2007), & in: • solar power/hydrogen/biofuels/coal-to-liquid tech. • Issue oflabour re-allocation from non to Green employment (see ILO) (C) D Renwick

Pay & Reward (P&R) • Need for a Green pay/reward system to < waste, e.g. DuPont/3M, & gain knowledge (such as chemistry re. emissions), e.g. Bhopal • Tailor packages to reward green skills acquisition (3M pay for them) • Use of monetary-based EM rewards (bonuses, cash, premiums) • Use of non-monetary based EM rewards (sabbaticals, leave, gifts) & recognition-based ones (awards, publicity, external roles, daily praise) (C) D Renwick

Pay & Reward (P&R) • Develop negative reinforcements (criticism, warnings, suspensions for lapses) NB: negatives teach little about waste disposal/disclosure • Develop positive rewards in EM (e.g. feedback) • Establish PRP in EM to gain stewardship/citizenship (esp. seniors) • Link EM suggestion scheme to reward system & participation in EM initiatives to career gains (mgrs. advance by helping staff in EM) • Use green tax breaks, Line have rewards to motivate employees in EM • Difficult to assess staff efforts/results in EM, & to reward it (C) D Renwick

Pay & Reward (1) Use monetary-based Green reward systems: • E.g. BFI,imp. % of mgmt monthly pay bonuses dependent on outcomes achieved in EM • DuPont & Neste Oy use exec pay/bonuses for middle mgrs/seniors partly based on stewardship practices/perf. goals in EM - part of bonus system • ICI set EM targets for senior mgmt PRP grading (C) D Renwick

Pay & Reward (1) Use recognition-based rewards for mgrs: E.g. Monsanto/Dow/ICI/Coors (present awards at public meetings) Duke Power (awards publicised via news articles) Make recognition at different levels: E.g. at EG&G for individual/team/division contributions to waste < Xeroxcompany-wide team excellence awards Body Shop pay staff to complete Green community service/events FedExgive 3 months paid leave to work on EM projects (C) D Renwick

P&R (2) Issues: • Need to develop rewards to motivate juniors, & link promotions to staff outputs in EM. E.g.’s: • Amicus/Legal & Generalannual Green awards scheme (open to all non-mgmt staff) • BSkyB: staff build points for Green behaviours on firm credit card to earn > benefits • Sky: £1,300 cash incentive for hybrid cars (UoS?) • first direct First direct: annual awards dinner recognises EM behaviours • CIPD/KPMG: 8% of UK firms reward Green behaviours with non-cash rewards • Shell:view (& reward?) staff highly with knowledge / experience in bio-fuels (C) D Renwick

P&R (3) Organisations may provide EM incentives. E.g.’s: • Car mileage for company cars can be extended to cover bike journeys/loans. • Staff can be offered financial substitutes for car allowances encouraging car pooling/sharing. • Company cars can be limited to journeys beyond public transport. • Tax incentives/exemptions can be used to loan bikes/safety equipment to staff. • Organisations can use a less polluting car fleet. • E.g. Rover, used suggestion scheme where if savings made by staff were over a certain level, reward for them was a new car!Hence… (C) D Renwick

Exit • Dismissal/exit de-briefings could include an EM dimension, as mgrs need to know why staff leave • Employers formulate & use whistle-blowing codes, & provide legal protection for users of them • Employers avoid stereotyping of whistle-blowers & use of ‘reverse’ whistle-blowing practices • Managers to ask if Green issues are reasons for resignations (too little EM? moving to a more Green employer?) • Exit interviews & whistle-blower accounts to gauge firm Green-ness (C) D Renwick

Exit CIPD: Equality Act (2006) – Tribunals to decide if ‘Green beliefs’ are grounds for protecting employees against discrimination in employment/vocational training - similar to those on ‘religious belief’, are such beliefs respected? Employers may need policy in EM & to respond to ‘Green belief’ requests by employees (e.g. for less travel, more recycling facilities, more flexible working), to avoid claims that EM beliefs are ignored (C) D Renwick

Discussion At present: • Employees’ personal values aren’t fully exploited towards achieving corporate EM initiatives • Personnel/HRfunction appears under-rated and needs to interact with others re. EM matters • Many orgs do not use an integrated approach to implement EM programmes & achieving it is difficult due to changing unsustainable practices that staff have learnt over decades • Issues arise in changing the approach of some HR staff to green issues– as a minority are actively hostile to EM & feel it detracts from HR being taken seriously as a business partner (CIPD) (C) D Renwick

Discussion (1) Some British HR mgrs question EM, saying: • The existence of global warming is not proven, and there is a need for debate on Green issues • The EM case is ‘not proven’, & ‘a lot of hype’ • Green employers are a form of ‘Green extremism’ • HR should not jump on ‘political bandwagons’, as this does the HR profession ‘no good’ when ‘striving to be taken seriously by business’ • Problem: HR’s professional identity is close to mgmt. Hart: it is ‘an ally to the present economic system that is destroying the environment itself’ • Also, need to monitor all mgmt styles used in EM, & to engage mgrs in EM (as mgrs may not care) (C) D Renwick

Green HR Roles HR Generalists (Today?) Light Green HR Environmental Generalists (Tomorrow?) Green HR Non-Environ. Specialists (Yesterday?) Non-Green HR Environmental Specialists (Tomorrow?) Dark Green © D Renwick

Discussion (3) HR role could be to: • Guide line mgrs to gain staff co-operation to implement EM policies & seek out allies to change the status quo • Integrate HRM & EM, E.g NUMMI use knowledge mgmt, EI, EP, employment screening, training, redundancy, < status differentials, & mgmt style to > EM in practice • Use org. culture to create climate of support for participation/collaboration. E.g. NUMMIuse of employee screening for co-operative people, socialisation via intensive training to remove adversarial mind-sets, a no-lay off policy, and reductions in status differentials to generate trust (C) D Renwick

Discussion (4) Many U.K. HR staff embrace EM today. Examples: • HR at Cable & Wireless implementing EM programme through global H&S function. • E.ONoptimise desk space – encourage working from home (if feasible), use online (live) meetings (to < staff travel between offices), & car-sharing • Skycampaign to turn off power sources when staff leave offices, using 100% renewable energy, & introducing solar lighting. • First directtravel policy to promote car sharing, and > use of public transport. • Boots< car journeys by 20%, use of intranet car-pooling scheme, e-HR helps staff track emissions (C) D Renwick

Discussion (5) CIPD survey: • 23% of HR professionals see HR as having ownership of environmental issues • 40% see HR should take facilitator role in EM • 23% see HR should take an assist others EM role • HR are well-placed to lead on introducing EM, as have experience in communication/culture change • HR role - HR can develop a report in EM, (incl. policy statement, targets, progress measures, impact assessment), & a policy framework to bind together EM initiatives in transport, flexible working, energy efficiency, & recycling. • Use of EM reports may encourage line managers & employees to take pride in EM in their firms (C) D Renwick

Discussion (6) • Successful EM seen to be underpinned by understanding of work attitudes & personal motivation of staff towards job/org/colleagues • E.g. Neste Oy:EM motivators = gender (women more), & professional values, but not pay! • Hence importance of intrinsic motivation & vocational call as employee motivators to EM • & not ethical concern &/or family/religious values (C) D Renwick

Discussion (6) Emphasis on designing HRM policies that tend to promote worker co-operation/involvement with firm EM objectives extrinsic factors that centre on EM policies, & intrinsic ones on staff skills/values Firms need to offer staff motivating devices of immunity & protection when reporting EM issues (C) D Renwick

Conclusions EM in HRM – Green HRM – can be understood through using a process model (detailed above) Green HRM is relatively new, as the HR function is one of the last management functions to ‘go green’ A future research agenda in Green HRM could include trying to understand what drives Green mgmt./employee behaviours (fear? guilt? other?) Read our SUMS Discussion paper on Green HRM, at: http://www.shef.ac.uk/management/research/papers/abstracts/2008-01.html & click on PDF in ‘Downloads/download the file’ See CIPD publication People Management for details of their ‘HR goes Green’ campaign (C) D Renwick

Initial Readings Renwick, Redman and Maguire (2008) Jabbour and Santos (2008) Brio, Fernandez and Junquera (2007) (see Module Pack for full details) (C) D Renwick

Human Resource Management