An

Assignment
On
Green HRM Practices in Banking Sector of Bangladesh

Submitted to:
Md. Mizanur Rahman
Professor
Department of Management Studies
Jagannath University

Submitted by:
Group: ‘E’
11th Batch; Section: B
Session: 2015-2016

Course Name: Contemporary issues at HRM

Course Code: MGT-5102
Department of Management Studies
Jagannath University

Submission Date:

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 Group List

Name ID Remarks
Md. Habibur Rohman Rasel B-150202149
Md. Takbir Hosen B-150202150
Zarin Tasnim Emu B-150202151
Md. Sohrab Hosan B-150202152
Jewel B-150202153
Md. Fazlae Rabbi B-150202154
Md. Shamim Reza B-150202155
Nishat Roy Antu B-150202156
Md. Mahedi Hassan B-150202157
Al Nahiyan B-150202158

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 Table of Contents

Serial Topic Page

Preliminary Pages i -iii

1 Introduction 1

2 Objectives of the study 2

3 Methodology of the study 2

4 Theoretical discussion 3-5

5 Green HRM practice in Bangladesh 6-9

6 Findings 10

7 Conclusion 11

8 Recommendations 12

Reference 13

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 Green HRM Practices in Banking Sector of Bangladesh

1. Introduction

Since the last couple of decades Green Human Resource Management has received an immense
attention among the scholars, academicians, business organizations as we are constantly facing a
lot of environmental calamities due to our own actions that produce immense impact on our
earth. The Green HRM is the requirement of the 21st Century as day in and day out, it is reported
in the newspaper that because of the excess consumption of natural resources as a raw material
by the industries and other commercial organization, there is tremendous pressure on the natural
resources of planet Earth. It is the high time we should think about the environmental
sustainability and produce less harm to the ecological system.

HR is regarded as an integral part of the organization that has the responsibility to manage the
human, the most important resource among the other resources. Organizations’ strategic skills
and HR professionals’ competencies are the prerequisite for promoting Green HRM practices.
Despite lack of sufficient studies on strategic HR competencies and Green HRM practices, HR
has been acknowledged as an essential factor in this regard.

Economic development of a country largely depends upon industrialization and a developed

banking organization is a pre-requisite for the industrial development of the country. Banks are
expected to play a very useful role in the economic development and the emerging markets will
provide ample business opportunities to harness. Green banking is a general term, which can
cover a multitude of areas from banking being environmentally friendly to how and also where
their money is invested. A green bank is a bank that promotes environmental and social
responsibility but operates as a traditional community bank and provides excellent services to
investors and clients. Its progressive approach towards the public and the earth makes it different
from the crowd. A Green bank is also called ethical bank, environmentally responsible bank,
socially responsible bank, or a sustainable bank, and is expected to consider all social and
environmental factors. Currently, in India, the concept of green banking is catching up and banks
are actively looking for ways to portray themselves as Green Bank.

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 2. Objectives of the study

Board objective:

To analyze the human resources management practice in the banking sector of

Bangladesh.

Specific objectives:

a) To bring to the fore the concept of green HRM.

b) To highlight different significant works on green HRM by other workers.
c) To suggest ways and means for green initiatives.

3. Methodology of the study

A system of methods used in a particular area of study or activity. It shows the data collection
sources of the study. We can collect data from two ways. Such as:

Primary data: Primary data is data that is collected by a researcher from first-hand sources,
using methods like surveys, interviews, or experiments. As present situation is not favor to use
for the pandemic so we couldn’t go out for the information.

Secondary data: Secondary data refers to data which is collected by someone who is someone
other than the user. Common sources of secondary data for social science include censuses,
information collected by government departments, organizational records and data that was
originally collected for other research purposes. We collected our most of the study data from
internet, magazines, newspaper etc.

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 4. Theoretical discussion

4.1 HRM Definition

Human resource management (HRM) is the practice of recruiting, hiring, deploying and
managing an organization's employees. HRM is often referred to simply as human resources
(HR). A company or organization's HR department is usually responsible for creating, putting
into effect and overseeing policies governing workers and the relationship of the organization
with its employees. The term human resources was first used in the early 1900s, and then more
widely in the 1960s, to describe the people who work for the organization, in aggregate.

4.2 Green HRM

GHRM is a new concept and is becoming popular all over the world. It has got different
meanings to different people. There is no comprehensive definition of GHRM. It refers to
making efforts to improve energy efficiency or reduce the pollution produced by our home,
business, and general living habits. The main purpose of going green is to reduce the potential
negative impact that energy consumption and pollution can have on the environment.
Green Human Resources Management (GHRM) can be defined as the set of policies, practices,
and systems that stimulate a green behavior of a company’s employees in order to create an
environmentally sensitive, resource efficient and socially responsible workplace and overall
organization.

4.3 Advantage of Green HRM

Green HRM involves undertaking environment-friendly HR initiatives resulting in greater
efficiency, lower costs and better employee engagement and retention, which in turn, help
organizations to reduce employee carbon footprints by electronic filing, car sharing, job sharing,
teleconferencing, and virtual interviews, recycling, telecommuting, online recruitment and
training, energy-efficient office spaces, etc. The Green Human Resource Management plays an
important role in the industry to promote the environment-related issues. Organizations must
formulate HR policies and practices, train people to increase awareness about the environment,

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and implement laws related to environmental protection. The Green HRM may also help the
employers, manufacturers in building brand image and reputation. Organizations need to conduct
an environmental audit, thus changing the organizational culture, thinking about waste
management, pollution, and helping the society and its people, those are getting affected by
pollution. It will also make employees and society members aware of the utilization of natural
resources more economically and encourage eco-friendly products.

4.4 Advantage of GHRM, which are mentioned below:

1. Helping companies to bring down costs without losing their talent.
2. Organizations have huge growth opportunities by being green and creating a new friendly
environment, which helps in enormous operational savings by reducing their carbon footprint.
3. It helps in achieving higher employee job satisfaction and commitment, which leads to higher
productivity and sustainability.
4. Create a culture of having concern for the wellbeing and health of fellow workers.
5. Improvement in the retention rate of the employee.
6. Improved public image. Any time a firm adds a green initiative to its workplace, it can use the
event to generate positive public relations.

7. Promote employee morale.

8. Improvement in attracting better employees. Dolan’s (1997) study of USA MBA students
found that most of the graduates would take a lower salary to work for environmentally
responsible organizations.
9. Reduction in the environmental impact of the company.
10. Improved competitiveness and increased overall performance.
11. Reduction of utility costs significantly. Even small businesses can significantly reduce their
utility costs by using technologies that are energy-efficient and less wasteful.
12. Rebates and Tax Benefits. Going green is easier with the assistance of governments, local
municipalities, Water supply authority, and electric companies that offer tax incentives and
rebates.
13. Increased business opportunities. Some government agencies, commercial businesses, and
nonprofit institutions mandate that only businesses that meet specific green standards can bid on

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their contracts. Some also mandate that their purchasing departments only buy green products or
use products and services sold by companies that meet certain green standards.
14. Reduction of environmental damage. Encouraging employees, through training and
compensation, to find ways to reduce the use of environmentally damaging materials.
Today, most educated and affluent consumers look for companies that adopt environmental
standards. Organizations pursuing environment-friendly human resource policies are also
immensely benefitted.

4.5 Disadvantage of Green HRM

While environmentally friendly living is a positive ideal, there are several possible disadvantages
of going green. Gregory Hamel has made a review of the disadvantages if an organization is
going green.

4.6 The major disadvantages of Green HRM are listed below:

1. Initial costs.
2. Inadequate savings.
3. Increased capital outlays.
4. Uneven competition.
5. Marginal impact.
6. Employee apathy and reluctance.

4.7 Implement of Green HRM

1. Recruit and select people committed to the environment.
2. Train and evaluate employees’ performance based on environmental criteria.
3. Implement ways of rewarding individual and collective environmental performance is
remunerated and non-remunerated ways.
4. Stimulate continuous education in environmental management.
6. Promote interaction between teams to deal with environmental problems and strive for
continuous improvement of environmental management activities.

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 5. Green HRM Practices in Bangladesh

Concept of Green Banking System in Bangladesh

The word ‘Green’ is used to covers social obligation of banks as corporate citizens and the term
‘green banking’ means ensuring a complete banking operation which will make sure sustainable
economic development. In other sense, it is an effective step to renovate client habits in the
banking sector for the sustainable growth in future. It is to encourage environment friendly
operations and to minimize the carbon footprint from banking operation. From the current
ranking Bangladesh is now the 8th most populated country in the world and also one of the most
ill-treated countries of environment pollution. Green banking in Bangladesh emanates from the
basic opinion that inaugurates all businesses as corporate people and requires them to have
responsibilities towards the community just like the ordinary citizens. This deviates from the
conventional school of thought that considers businesses as existence organized to do business
profitably on the investments of their shareholders.

The financial mediators performing an important role in allocating resources in today’s

globalizing world. A mass portion of all companies and governments is reliant on the financial
services of private banks; these financial intermediates perform a significant role in every section
of human activity. The banks, therefore, stand at a central point where they can be dominating
agents of change towards a more sustainable future by responsibly allocating their financial
services to such initiative which are beneficial to the environment, human rights, and social
equity.

The banking sector has its own rational reasons for promoting green which includes financial
reimbursement, avoidance of undesired negative promotion from community groups and
fulfillment of the regulations. It will be screening their customers naturally and will limit and
control their business only to the qualified. With a minor group of customers, they’ll routinely
have a lesser profit base to maintain them. If they focus their credits on certain business, they
open themselves up to being much more susceptible to monetary shipment. From the regulatory
viewpoint green banking entails long term profitability in the form of elasticity of banking
system and the sustainable growth. Recently, the green banking movement has influenced
banking sector of Bangladesh mostly due to green policy framework of the central bank of

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Bangladesh. The banks in Bangladesh are practicing green banking more or less along the lines
of the policy framework of Bangladesh Bank, the central bank of Bangladesh. To reveal the
nature and extent of green banking and green financing practices conceived the necessity of
environmental and societal roles of banking while operating banking activities in Bangladesh.

The Activities of Green Banking in Bangladesh

To perform green banking activities, 43 commercial banks of Bangladesh are agreed and started
GBU (Green Banking Unit). Various strategies are taken by them to provide sustainable,
environment friendly Green banking procedures. All the activities of green banking performed
by Bangladeshi banking sector are described below:

I. Instead of paper made statements banks are using E-statements for their clients.
II. Banks are using more day-lights and reduce the work at night to save electricity.
III. Maintaining communication through online in the best possible manner.
IV. Use of solar energy and concentrate to establish renewable energy infrastructures.
V. Recruit and select employees through online communication and advertisement instead of
paper made documents.

Green Job Design and Analysis

Nowadays environmental management issue has become so significant that many organizations
are creating environment friendly jobs to ensure environmental sustainability. Environmental,
social, personal, and technical requirements of the organizations can be included in the job
descriptions and job specifications. For example, environmental reporting roles, health and safety
tasks and environmental protection duties can be included in the job descriptions. Many
organizations use teamwork and cross functional teams as job design techniques to successfully
manage the environmental issues. Again, Green competency can be a special component of job
description.

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Green Human Resource Planning

In order to introduce environmental issues in the corporate culture, specific set of skills and
expertness are needed. Green human resource planning is required in this regard. New
environment friendly strategies can also be taken to meet the forecasted demand by an
organization. For example: ISO 14001, cleaner production, responsible care, environmental
audits etc. are some of the good practices which are already being adopted by some leading
organizations to meet their environmental goals.

Green Recruitment

Every organizations must choose employees who are aware of environmental issues so that in
future they will be able to learn the corporate environmental issues more easily and also in a
serious way. So, sustainable development issues need to join in the employee recruitment
process.

Green Selection

For maintaining environmental sustainability, ‘environmental concern and interest’ can be one
of the selection criteria while taking selection decision for vacant posts. Environment related
questions can be asked in the interview board while interviewing candidates. Some organizations
are trying to select candidates who are sufficiently aware of the term ‘Green HRM’ and who are
involved in greening as consumers in their private lives.

Green Performance appraisal

Communicate that green practices as a criterion for performance evaluation of employees. -

While evaluating the performance of individual employees, make sure that the green
performance of that employee both individually and collectively considered.

For example, TATA group of industries set some corporate standards for environmental
performance measurement. These standards includes:

a) Waste management
b) Official behavior of employees
c) Environmental office

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 d) Workplace environment.

Green Training and development

Employee training and development program should include sustainable development and
environmental lessons. From technical health and safety need on the shop floor to strategic
sustainability issues at official administration and board level. Green orientation programs for the
recently higher recruit ought to be a fundamental part of the preparation and improvement
process

Green Pay and Reward

Successful implementations of environmental initiatives need to include in the compensation

system. Every organization should give their employee benefit package that is basically a
rewards for green performance. It will energize the employee towards the organizational as well
as Green objectives.

Green Employee Discipline Management

Green discipline management ensures green employee behavior which is compulsory for
achieving environmental as well as organizational management objectives and strategies.
‘Discipline management’ assures self-regulation of the workforce for protecting the environment
against the activities of their organization.

Green Employee Relations

Publish organizational policies, rules that are followed by Green HRM practices. Train
employees to maintain their relations in workplace in a disciplinary system regarding the breach
of environmental process. These policies can be more effectively utilize if organizations provide
its Green goals in the job descriptions while advertising for recruitment. These can help:

a) Creating better workplace culture.

b) Improve employee’s health and safety issues.
c) Reduction of unnecessary competitions
d) Motivate Employees.
e) Good workplace conditions improve Organizations reputation

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 6. Findings

i. There was a great shortage of ICT-literate manpower in the banks. Only 4% staff had
professional IT background with short term certificate course(s), while 70% had
minimum knowledge on IT, and the rest of the staff (26%) had no IT knowledge.

ii. The study found that each bank has its own training institute for human resource
development activities but there is no proper HR information system in any of the
surveyed banks. All human resources were centrally managed by their respective
headquarters’.

iii. All banks followed same procedural steps for selection and employment of qualified
employees: completion of application form, employment test (cv scrutinize, written, viva-
voce), comprehensive interview (simulation test, presentation, case analysis), and final
employee selection.

iv. Most banks are generally practicing environment protection work once or twice in a
year, and usually as part of Corporate Social Responsibilities (CSR).

v. Various banks are providing Online Banking but most of the Banks are not following
all the policies of Green Human Resource Management.

vi. Management process is not fully capable of GHRM as many activities of the bank are
done by traditional way.

vii. Present HR experts are facing the lack of basic structure, procedures, instruments,
and perspective of Green HRM to make the best choice and build up the future
GHRM pioneers of the banking sector.

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 7. Conclusion
As environment is changing and organizations are concerned keep environmental management,
the recent HR managers are responsible to incorporate the Green HR concepts in corporate
mission, HR policies and their daily activities. Though it's the responsibility of HR managers to
create awareness to youngsters and other working people about green movement, preserving
natural resources and marinating environmental Sustainability (Mathapati, 2013) but the
organization's culture and employee's mind sets are also essential in this regards. Beside these,
some other factors like costs, state rules and regulations, social and community supports also
important. If the organizations can make sure the Successful implementation of green HRM, it
can ensure three types of Sustainability (environment, social, and economic) for the
organizations.

Though many organizations and employees in Bangladesh are well-informed regarding green
HRM issues but the success is not still remarkable due to lack of investment, inadequate IT
supports, proper policy, community and governmental supports. Moreover, We can find some
positive sign regarding green management in our sample banks such as- using energy saving
lighting, recycling products, doing e-work, reducing ink and tonner use through printing double
sides, car sharing/ using public transport for travel, using telecommuting/videoconferencing to
avoid travel and pollution, practicing e-HRM and database management systems. Though the
practices are limited as Bangladesh is less technologically advanced country but the scenario is
changing day by day and we are optimist tor the better tomorrow. Through the research, the
researchers tried to have an about the present status of the Green HRM or management practices
in the banking or of Bangladesh and they think the day is not so far when all the organizations
will come forward to practices green HRM policies and contribute to restore the environmental
sustainability and make the world livable for the human being.

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8. Recommendations

a. While developing infrastructures such as buildings, machines, factories and so on, banks
should oblige all the rules of Green Banking. Even, when giving loan to any clients, if the
purpose of the loan receiver is not friendly to the environment, the loan should not be
granted.

b. Numbers of the employee should be increased from ICT background. Green HRM mostly
related to ICT sector. So, more man power should be needed from that background.

c. The most important thing in GHRM is HRIS. There is a lack of proper HRIS. So, all the
systems should be attached with Human Resources Information System (HRIS).

d. Procedural steps of selection should be changed from traditional way.

e. Green banking activities should be done for future and in a sustainable way. It’s not only
corporate social responsibility but also the future of mankind.

f. Green banking doesn’t mean only online banking. The area of green banking is large.
And rules and regulations of green banking should be followed for every sector in this
large area.

g. Management is responsible for GHRM and so it should be made according to present

demand. Management process should be made according to rules and regulations of
GHRM.

h. Last but not the least, leadership development is necessary as present HR experts are
facing problems to implement GHRM.

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 References

Annual report of different bank.

Boselie, P., Paauwe, J. Jansen, P. (2001). Human resource management and performance: lessons from
the Netherlands. International Journal of Human Resource Management, 12(7), 1107-1125,

Lee, K. H. and Ball, R. (2003). Achieving Sustainable Corporate Competitiveness: Strategic Link between
Top Management’s (Green) Commitment and Corporate Environmental Strategy. Greener Management
International, (44), 89-104.

Sudin, S. (2011). Strategic Green HRM: A proposed model that supports Corporate Environmental
Citizenship, International Conference on Sociality and Economics Development IPEDR vol.10 (2011).

Marhatta, S., Adhikari, S. ( ), GREEN HRM AND SUSTAINABILITY, ASM‟ S International E-Journal of
Ongoing Research in Management and IT, e-ISSN-2320- 0065

Websites

https://www.questia.com/library/journal/1G1-509893928/green-hrm-practices-in-private-health-care-
banking

https://www.iedunote.com/green-hrm

https://www.google.com/search?q=green+hrm+in+banking+sector+of+bangladesh&oq=green+hrm+in+
banking+sector+of+bangladesh&aqs=chrome..69i57.5740j1j9&sourceid=chrome&ie=UTF-8

https://www.linkedin.com/pulse/green-human-resources-management-transitional-route-alam-acma-
acs

https://www.google.com/search?sxsrf=ALeKk03QzmkmNuLmmr-
rHD2Ln0lixJB7vw:1600688764274&q=problems+and+prospects+of+hrm+in+bangladesh&sa=X&ved=2ah
UKEwj7x8KplvrrAhX7wzgGHVozCzcQ1QIoAXoECA0QAg&biw=1366&bih=657

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