Green human resource management practices (GHRM) and its effect on sustainable competitive edge

Green Human Resource Management Practices (GHRM) and Its Effect on Sustainable Competitive Edge in the Nigerian Manufacturing Industry A Study of Dangote Nigeria Plc Dissertation submitted in part fulfilment of the requirements for the degree of MBA in Human Resource Management Oyedokun Oyewale i Declaration I, Oyewale Oluwapelumi Oyedokun _, declare that this research is my original work and that it has never been presented to any institution or university for the award of Degree or Diploma In addition, I have referenced correctly all literature and sources used in this work and this work is fully compliant with the Dublin Business School’s academic honesty policy Signed: oyewale Date: 20/05/2019 _ ii Acknowledgements I would like to express my gratitude to God almighty for seeing me through my master’s degree and the great opportunity to successfully complete my dissertation Secondly, I would like to thank my supervisor Ray Whelan for his academic guidance and support in my research throughout the dissertation I am also thankful to my parents and siblings for their continuous and very importantly I would like to thank my good friends and colleagues for their encouragement and kindness iii Abstract The following is an abstract of my dissertation: Purpose: The purpose of this research is to investigate green human resource management (GHRM) and its effect on the sustainable competitive edge in the Nigerian manufacturing industry A case of this study was directly referenced to the employees of Dangote Nigeria Plc The components of human resource management were coined to fit into the green approach as the study came up with green recruitment, green training and development, green compensation and green employee relations All these sub-variables were used to measure the predictive outcome such as a sustainable competitive edge in the Nigerian manufacturing industry Methodology: A methodology was adopted as the main research paradigm to discover reality It was quantitative research which collects primary data through an online Survey Monkey from the 242 employees of Dangote Nigeria Plc under four business branches in Lagos State, Nigeria It was a cross-sectional survey which employed descriptive research for the study And due to some field constraints in the course of survey exercise, only 217 responses were retrieved which approximate to 89.67% of the total response rate available for analysis Also, a mini-pilot survey of 30 was conducted to ascertain the validity and reliability of every item in the research instrument Results: The study provided empirical evidence to discovered using both descriptive statistics and multiple regression analysis that, green recruitment practices, green training and development practices, green compensation structure and green employee relations, all have a positive and significant effect on the sustainable competitive edge in the Nigerian manufacturing industry These findings, however, was used to modify the assumptions of an existing theory such as instrumental theory which prioritised shareholders wealth maximization over the process and environmental consideration in the course of business operation and establishment Recommendation: The study recommends to the organisations operating in the Nigerian manufacturing industry to embrace the process of business operation while diverting attention to the environment under which the business operates in such a way that would be environmentally friendly and harm-free of pollution to the residence iv TABLE OF CONTENTS Contents Declaration………………………………………………………… Acknowledgments………………………………………………… Abstract…………………………………………………………… Table of Content…………………………………………………… List of Figures…………………………………………………… List of Tables……………………………………………………… Introduction………………………………………………… …… 1.1 Overview 1.2 Research Background 1.3 Research Problem 1.4 Research Questions 1.5 Research Hypotheses 1.6 Scope of the Study………….……… 1.7 Motivation of the Study 1.8 Outline of Research Methodology 1.9 Structure of the Dissertation Literature Review………………………………………….………… 2.1 Overview… 2.2 Conceptual Framework 2.2.1 Green Human Resource Management: An Overview 2.2.2 The Concept of Green Recruitment Practices 2.2.3 The Concept of Green Training Development Practices 2.2.4 The Concept of Green Compensation Structure 2.2.5 The Concept of Green Employee Relations 2.3 Theoretical Framework: Linking Instrumental Theory with GHRM And Sustainable Competitive Edge…………………………………… 2.4 Empirical Review of Past Studies on GHRM and Sustainable Competitive Edge…………………………………….……………………………… Methodology and Research Design…………… 3.1 Overview 3.2 Research Objectives 3.3 Research Strategy ….…………………………………………… …… 3.4 Data Collection Methods………………………………………… …… 3.5 The Study Population and Sample Size Determination… …… …… 3.6 Sampling and Fieldwork……………………………………………… 3.7 Instrumentation: Validity and Reliability…………………… ………… 3.8 Access and Ethical Issues…………… ………………………………… 3.9 Approach to Data Analysis……………….……………………….…… 3.10 Research Limitations………………….………………………….…… Analyses and Findings………………………………………………… 4.0 Overview 4.1 Analysis of Field Performance of Questionnaire………………………… v Pages ii iii iv v vii viii 1 2 10 11 14 14 15 17 19 21 22 24 25 27 30 30 30 31 32 33 35 37 40 40 41 42 42 43 4.2 Section A: Interpretation of Codes………………………………………… 4.3 SECTION B: Demographic Characteristics of Respondents……………… 4.4 SECTION C: Presentation and Analysis of Data According to Research Question…………………………………………………………………… 4.4.1 Research Question 1……………………………………………………… 4.4.2 Research Question 2……………………………………………………… 4.4.3 Research Question 3……………………………………………………… 4.4.4 Research Question 4……………………………………………………… 4.4.5 Dependent Variable…………………………….………………………… 4.5 SECTION D: Analysis of Variables According to the Research Questions Using Mean and Standard Deviation of Descriptive Statistics…… …… 4.5.1 Research Question 1……………………………………………………… 4.5.2 Research Question 2……………………………………………………… 4.5.3 Research Question 3……………………………………………………… 4.5.4 Research Question 4……………………………………………………… 4.5.5 Dependent Variable……….……………………………………………… 4.6 SECTION E: Test of Hypotheses………………………………………… 4.6.1 Test of Hypothesis 1……………………………………………………… 4.6.2 Test of Hypothesis 2……………………………………………………… 4.6.3 Test of Hypothesis 3……………………………………………………… 4.6.4 Test of Hypothesis 4……………………………………………………… 4.7 Discussion of Findings…………………………………………………… Conclusion and Recommendations …… 5.1 Overview…………………………………………………………………… 5.2 Summary of Findings 5.3 Specific Conclusions 5.4 General Conclusions and Recommendations 5.5 Recommendations for Future Research Reflections………………………………………………………………… 6.1 Overview……………………………………………… …………………… 6.2 Personal Development Objectives …………………………………………… 6.3 Contribution to General Knowledge ………………… ……………………… Bibliography Appendix vi 44 45 50 50 53 56 59 62 65 66 67 68 69 70 71 71 73 74 76 77 79 79 79 80 82 84 86 86 87 88 91 97 List of Figures Figure 1: Dissertation Structure……………………………………………………… Figure 2: Model showing the Effect of GHRM on Sustainable Competitive Edge in the Nigerian Manufacturing Industry……………………… ……… Figure 3: Respondents Distribution According to their Gender……………………… Figure 4: Respondents Distribution According to their Age……….………………… Figure 5: Respondents Distribution According to their Educational Qualification… Figure 6: Respondents Distribution According to their Work Experience…………… Figure 7: Respondents Distribution According to their Work Position……….……… vii 12 16 45 46 47 48 49 List of Tables Table 1: Dangote Staff Population in Lagos 33 Table 2: Proportional Allocation of the Sample for Staff Job-Position Category 36 Table 3: Proportional Allocation of the Sample for Branch Population Category… 36 Table 4: Dangote Staff Population and Sample in Lagos………………………… 37 Table 5: Results of the Reliability Test…………………………………………… 39 Table 4.2.1: Codes for Demographic Data………………………………………… 44 Table 4.2.2: Codes for Research Questions Data………………………………….… 44 Table 4.3.1: Frequency of Data: Distribution of the Respondents According to Gender 45 Table 4.3.2: Frequency of Data: Distribution of the Respondents According to Age 46 Table 4.3.3: Frequency of Data: Distribution of the Respondents According to Educational Qualification……………………………………………………………………… 47 Table 4.3.4: Frequency of Data: Distribution of the Respondents According to Work Experience………………………………………………………………………… 48 Table 4.3.5: Frequency of Data: Distribution of the Respondents According to Work Position………………………………………………………………………… 49 Table 4.4.1.1: Frequency of Data……………………………………………………… 50 Table 4.4.1.2: Frequency of Data……………………………………………………… 51 Table 4.4.1.3: Frequency of Data……………………………………………………… 51 Table 4.4.1.4: Frequency of Data……………………………………………………… 52 Table 4.4.1.5: Frequency of Data……………………………………………………… 52 Table 4.4.2.1: Frequency of Data……………………………………………………… 53 Table 4.4.2.2: Frequency of Data……………………………………………………… 54 Table 4.4.2.3: Frequency of Data……………………………………………………… 54 Table 4.4.2.4: Frequency of Data……………………………………………………… 55 Table 4.4.2.5: Frequency of Data……………………………………………………… 55 Table 4.4.3.1: Frequency of Data……………………………………………………… 56 Table 4.4.3.2: Frequency of Data……………………………………………………… 57 Table 4.4.3.3: Frequency of Data……………………………………………………… 57 Table 4.4.3.4: Frequency of Data……………………………………………………… 58 Table 4.4.3.5: Frequency of Data……………………………………………………… 58 Table 4.4.4.1: Frequency of Data……………………………………………………… 59 Table 4.4.4.2: Frequency of Data……………………………………………………… 60 Table 4.4.4.3: Frequency of Data……………………………………………………… 60 Table 4.4.4.4: Frequency of Data……………………………………………………… 61 Table 4.4.4.5: Frequency of Data……………………………………………………… 61 Table 4.4.5.1: Frequency of Data……………………………………………………… 62 Table 4.4.5.2: Frequency of Data……………………………………………………… 63 Table 4.4.5.3: Frequency of Data……………………………………………………… 63 Table 4.4.5.4: Frequency of Data……………………………………………………… 64 Table 4.4.5.5: Frequency of Data……………………………………………………… 65 Table 4.5.1: Mean and Standard deviations on research question (6 -10)…………… 66 Table 4.5.2: Mean and Standard deviations on research question (11 -15) ………… 67 Table 4.5.3: Mean and Standard deviations on research question (16 -20) …………… 68 Table 4.5.4: Mean and Standard deviations on research question (21-25) …………… 69 Table 4.5.5: Mean and Standard deviations on research question (26-30) …………… 70 Table 4.6.1: Using Multiple Regression Analysis in Testing Hypothesis 1…………… 71 Table 4.6.2: Using Multiple Regression Analysis in Testing Hypothesis 2…………… 73 Table 4.6.3: Using Multiple Regression Analysis in Testing Hypothesis 3…………… 74 Table 4.6.4: Using Multiple Regression Analysis in Testing Hypothesis 4…………… 76 viii CHAPTER ONE INTRODUCTION 1.1 Overview The emerging concerns of the global environment have forced many organisational practices to prioritised environmental affairs and business sustainability (Ullah, 2017) Most especially in Nigeria, where many firms in the manufacturing industry adopt different managerial concepts for practices with less consideration of its effects on the environment (Osuagwu, 2006) Unlike marketing, production and accounting so also human resource management (HRM) is a key function in an organisation According to Mehta and Chugan (2015), HRM is an important aspect of management The practices of HRM in the organisations is aged while many take fewer precautions on its impacts on the environment (Agarwal, Garg & Pareek, 2011) The relevance of this environment in its natural and original form is what Ullah (2017) referred to as ‘green’ On this note, going green does not mean an environment has to be painted green, but it means the measures where organisations operating in a business area are been conscious of their environment (Jabbour, 2011; Mandip, 2012; Kapil, 2015) Therefore, the focus of integrating environmental management into HRM practices is what scholars (see, Dutta, 2012; Fayyazia, Shahbazmoradib, Afsharc & Shahbazmoradic, 2015; Arulrajah, Opatha & Nawaratne, 2015) referred to as ‘green’ HRM today Also among the business practitioners, most international organisations today have haste up in greening the global business environments (Castells, 2014) An instance of the international standards for environmental protection and preservation that calls for businesses in the global environment to devise environment-friendly strategies (Ullah, 2017) 1.2 Research Background A global increase in business challenges and sustainability have forced many businesses across the globe to engage in researches that are best suitable for identifying the best and most trending strategies available for implementation towards gaining a sustainable competitive market Among these strategies is green human resource management (GHRM) which involves an organisation concern towards their business environment Research conducted by Ladipo, Awoniyi and Arebi (2017) shown that most firms failed in a competitive environment when their business environments are taken for levity At the same time, some researchers have earlier found that organisations are likely to be profitable than usual if they engage in GHRM to balance its industrial growth and preservation (Daily & Huang, 2001; cited in Murari & Bhandari, 2011) Therefore, a scholarly view of these environmental considerations in HRM practices has led to the establishment of green human resource management (GHRM) (Chowdhury, Sanju & Asaduzzaman, 2017) These including the habits and conduction of recruitment practices, induction, training, compensation and employee relations in an organisation in such a way that would be harm-free to the environment ((Mathapati, 2013) Therefore, A GHRM is a prioritised affair for an organisation embarking on recruitment and training exercise in order to sustain a competitive business environment (Mtembu, 2017) Today, numerous studies have emerges on GHRM by many scholars using different measures towards achieving a sustainable business environment and competitive edge According to the research conducted by Mandip (2012), the author emphasised that “HR function will become the driver of environmental sustainability within the organization by aligning its practices and policies with sustainability goals reflecting an eco-focus” Also, Arulrajah, Opatha & Nawaratne (2015) confirmed that the ultimate CHAPTER SIX REFLECTIONS 6.1 Overview The conduct of this research has opened by sight as a researcher to understand why and how some methodology tools and statistics are used differently The adopted research quantitative approach has helped me to engage in some procedures that are far different from what I have studied by engaging in the real practical steps towards investigating the effect of GHRM on the sustainable competitive edge in the Nigerian manufacturing industry However, the adopted process includes:  A mini investigation in identifying research gaps in the field of human relation management  Building on the existing theories and new context under which the identified gaps would be studied  Drawing a specific objective for the study which was aptly transformed into research questions and hypotheses  Developing a specific scope and the demographic characteristics of the specific people the study captured and their business locations  Engaging in literature argument where the fact, reasons and examples were used to developed relevant and reasonable discussions on the discoursed topic  Linkages of about four theories in order to arrive at a specific one that is most relevant to the study  Designing the methodological paradigm that best fit the study including it approaches, methods, population, the actual sample size and sampling 86 procedure, while a mini-pilot survey was conducted to ascertain the consistency and accuracy of the research instrument  A propose to fieldwork through ethical consideration, collection of numerical data through an online survey called Survey Monkey and then prepare the data for analysis  The study was analysed using different statistical tools such as descriptive statistics (i.e frequency distribution, percentage counts, mean and standard deviations) and multiple regression analysis for the hypotheses testing The completion of these preliminary and systematic investigations of quantitative research has helped me to determine justifiable findings drawn to supplement my conclusions Therefore, the evidence gathered from these findings and its benefits to the general stakeholders such as Dangote Company, its employees, future researchers and society at large is the first reflection of this study Other reflections are explained in the subsequent sections below 6.2 Personal Development Objectives It is always important in research to display some skills based on what I have learnt from school But in most cases, it is also required to read widely in order to understand some systematic procedure attached to the conduct of different researches In this research, I have decided to engage in a quantitative study based on the knowledge I acquired from Dublin Business School But at a junction in the process, I had to engage in further readings on quantitative research books and articles in order to learn the new and trending ways of solving quantitative research problems At first, matching the HRM components such as recruitment, training and development, compensation structure and employee relations into the green practices was a big challenge with no hope on what the outcome would be Until I read wide by surfing some literature facts 87 and reasons attached to these components before building and strengthening my confidence in proceeding with the research work These components, however, was aptly transformed into research questions and hypotheses that guide the study’s linearity from beginning to the end Also, this study was the application of theory in justifying the hypothetical statements designed for this study while comparing the theory’s actual assumptions with my study’s findings in order to arrive at an end This exercise has been the major argument of both quantitative and qualitative researchers for years on theory building which was practicalised to this study for investigation Also learnt in this research was adoption of an online survey which surfaces as a result of new development in technology and was far more advantageous over the traditional survey method such as face-to-face questionnaire administration method and others Lastly, the importance and usefulness of different statistical tools through SPSS were made known to me in this research Where I experience the voice of different statistical measures for analysis with different purposes and usefulness for specific reasons 6.3 Contribution to General Knowledge The findings of this study as revealed in the model and hypothesis have both positive and significant effect on the theory and practices For instance, the claims and assumptions of the existing instrumental theory adopted for study reveal that:  Maximisation of shareholders’ wealth is the only responsibility of the business towards the society and within its legal framework and general ethical custom of the country  Focuses on achieving the economic objective through social activities  Making certain organisational activities a norm and culture that is practically acceptable in an institution, as thus institutionalising 88  Using both internal and external forces to create policies and procedures in favor of the shareholders, by using these policies to gain resources and other benefits from the environment In this study, it was discovered that a focus on shareholders’ wealth maximisation is not the only means for achieving a competitive edge in a competitive environment, as instrumental theory emphasised Rather, a consideration on the environmental consciousness under which the company operations has a significant effect on the business competitive edge Unlike the strategic goal and performance focus emphasised in instrumental theory, this study found a new gap through the context it was studied i.e Nigerian manufacturing industry, that green recruitment, green training and development, green compensation structure and green employee relations was found with both positive and significant effect on the sustainable competitive edge in a competitive environment Also, it is understandable in this study that the primary objective of every firm is to maximise its profit, but a need is also required mostly on the process rather than the output alone When the process is faulty, there is every tendency that the output would also be affected Therefore, a business with a strong foundation on its process ranging from its day-to-day business operational activities, to a sustainable environmentally harm-free HRM practices, then, such business could be said to be feasible towards attaining its planned destination, such as business performance and profit maximisation emphasised in the instrumental theory The attainment of this end does not only applied to organisation as a whole, rather, it helps the employees also to develop their green initiative and general orientation as to initiate this green effect to their personal life towards achieving their individual present and future objectives 89 Therefore, the means is GHRM, while the end is the performance and profit maximisation However, both the means and the end, that is, the process and the output, are important towards sustaining a competitive business environment Also, this dissertation has paved the way for the Nigerian manufacturing companies on how green HRM practices can be prioritised towards achieving business goals and objectives 90 BIBLIOGRAPHY Adegbite, E (2015) Good corporate governance in Nigeria: Antecedents, propositions and peculiarities International Business Review, 24(2), 319-330 Adunbi, O (2015) Oil wealth and 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New York: South-Western/Cengage Learning Zoogah, D (2011) The dynamics of green HRM behaviours: A cognitive social information processing approach: Zeitschrift fur personal for schung German Journal of Research in Human Resource Management, 25(3), 117-139 96 APPENDIX DUBLIN BUSINESS SCHOOL QUESTIONNAIRE COVER A Dissertation on green human resource management (GHRM) practices and its effect on the sustainable competitive edge in the Nigerian Manufacturing Industry Name: School: Supervised by: Oyewale Oyedokun Dublin Business School Ray Whelan Dear Respondents, I am an MBA in Human Resource Management student at Dublin Business School (DBS) Your participation is required for the conduct of this survey The aim of the research is to “investigate GHRM and its effect on the sustainable competitive edge in the Nigerian manufacturing industry: A study of Dangote Nigeria Plc.” This survey consists of 30 questions and will take approximately 10 minutes to complete If you not want to continue, you can stop anytime Thanks, Oyewale Oyedokun 97 QUESTIONNAIRE Instruction: Please tick as appropriate SECTION A S/N Socio-Demographic Characteristics What is your gender? What is your age? What is your highest educational qualification? How long have you been working with Dangote Nigeria Plc.? How would you classify your work position in your organisation? Categories [ ] Male [ ] Female [ ] 20-29 years [ ] 30-39 years [ ] 40-49 years [ ] 50 years & above [ ] O-level & below [ ] OND/NCE [ ] Bachelors’ degree /HND [ ] Masters’ degree [ ] Others, Please Specify…………………… [ ] 0-4 years [ ] 5-9 years [ ] 10-14 years [ ] 15-19 years [ ] 20 years & above [ ] Senior Staff [ ] Management Staff [ ] Junior Staff [ ] Contract Staff SECTION B Employees’ Perceived Green Recruitment Practices Consider your perception of green recruitment practices in Dangote Nigeria Plc, to what extent you agree or disagree with the following statements? = Strongly Agree, = Agree, = Fairly Agree, = Disagree, = Strongly Disagree The HR managers in Dangote Company aid an environmentally harm-free exercise in the conduct of its recruitment practices Dangote Company usually considers the corporate environmental managerial factors when planning recruitment exercise Dangote Company computerised its recruitment exercise in order to control environmentally harm-free practices Dangote Company adopts strategies to forecast its environment-related activities for deciding its recruitment exercise 10 Generally, recruitment practices in Dangote Company have been environmentally harmed free 98 Employees’ Perceived Green Training and Development Practices Consider your perception of green training and development practices in Dangote Nigeria Plc, to what extent you agree or disagree with the following statements? = Strongly Agree, = Agree, = Fairly Agree, = Disagree, = Strongly Disagree 11 Dangote Company identifies and analyses environmental training need to its staff towards developing the required skills and knowledge 12 Dangote Company provides training to its staff on how to adapt to environmentally friendly practices 13 Dangote Company provides environmental awareness training to its staff towards achieving a competitive edge in the industry 14 Dangote Company provides an opportunity for its staff on environmental consciousness 15 Dangote has continuously improved its training and development programs on environmentally friendly practices Employees’ Perceived Green Compensation Structure Consider your perception of green compensation structure in Dangote Nigeria Plc, to what extent you agree or disagree with the following statements? = Strongly Agree, = Agree, = Fairly Agree, = Disagree, = Strongly Disagree 16 Dangote Company introduces a new reward to its staff on innovative environmental performance 17 Dangote Company provides an excellence award to its employees on their environmental related performance 18 Dangote Company provides a financial reward to its staff on their environmental related performance 19 Dangote Company provides incentives to its staff towards encouraging an environmentally friendly practice 20 Dangote Company staffs are disciplined and responsible for the communities in their environment Employees’ Perceived Green Employee Relation Consider your perception of green employee relation in Dangote Nigeria Plc, to what extent you agree or disagree with the following statements? = Strongly Agree, = Agree, = Fairly Agree, = Disagree, = Strongly Disagree 21 22 23 24 25 Dangote Company provides opportunities to its staff towards participating in the environmental friendly schemes Dangote Company provides opportunities to the communities to negotiate with management about environmental related issues Dangote Company employs a joint consultation within the system to control environmental related problems It is better if Dangote introduces whistle-blowing strategy towards curbing all environmentally related misconducts Dangote Company maintains a good relationship with the communities in their business environment 99 Employees’ Perceived Sustainable Competitive Edge in the Nigerian Manufacturing Industry Consider your perception of sustainable competitive edge in the Nigerian Manufacturing Industry, to what extent you agree or disagree with the following statements? = Strongly Agree, = Agree, = Fairly Agree, = Disagree, = Strongly Disagree 26 Environmentally harm-free recruitment practices will help Dangote to sustain a competitive edge in the Nigerian manufacturing industry 27 Environmentally harm-free training and development will help Dangote to sustain a competitive edge in the Nigerian manufacturing industry 28 Environmentally harm-free compensation structure will help Dangote to sustain a competitive edge in the Nigerian manufacturing industry 29 Environmentally harm-free employee relations will help Dangote to sustain a competitive edge in the Nigerian manufacturing industry 30 Generally, Dangote engagement in the environmentally harmfree HRM practices will result in more opportunities for the company towards securing a competitive edge in the market *Thank you very much for your willingness to participate in my research survey 100 ... Mean and Standard deviations on research question (6 -10)…………… 66 Table 4.5.2: Mean and Standard deviations on research question (11 -15) ………… 67 Table 4.5.3: Mean and Standard deviations on research... regression analysis that, green recruitment practices, green training and development practices, green compensation structure and green employee relations, all have a positive and significant effect. .. less consideration of its effects on the environment (Osuagwu, 2006) Unlike marketing, production and accounting so also human resource management (HRM) is a key function in an organisation According