How Green HRM Practices Affect Employee Environmental Performance in the Banking Industry of Southern Punjab, Pakistan: The Mediating Effects of Green Psychological Climate and Environmental Commitment

Abstract

With rising environmental challenges, organizations have been turning to green human resource management (HRM) as a means of encouraging employee behaviors that would increase sustainability. Based on Resource-Based View (RBV), Social Exchange Theory (SET), and Social Identity Theory (SIT), the paper analyses the impact of Green HRM practices on employee environmental performance within the banking industry in Southern Punjab, Pakistan with reference to HBL, NBP, BOP, UBL, and Meezan Bank Limited. The paper also examines the parallel mediating effects of green psychological climate and environmental commitment in the relationship between green HRM practices and employee environmental performance. Based on a cross-sectional survey, data were collected from 387 respective bank employees using convenience sampling technique. The collected data used to test seven hypotheses using structural equation modeling (SEM) in AMOS with five direct effects and two mediating effects. The results affirm that green HRM practices significantly impacts green psychological climate, environmental commitment, and employee environmental performance, and also both mediators help to transmit the effect of Green HRM practices on environmental performance positively. The study adds to theory by combining cognitive (climate) and attitudinal (commitment) processes to the research of Green HRM and to provide practical advice to banks in Southern Punjab to develop HR initiatives that reinforce sustainable behavior and environmental performance.