Green Behaviors Factors on Green Human Resources Management Practice on the Employees of “The First Movers on Sustainable Banking” in Indonesia

Abstract

Based on the 2018 Environmental Performance Index (EPI), Indonesia’s environmental quality is ranked 133 out of 180 countries. The low quality of the environment is caused by human resources who do not comprehend the concept of environmentally friendly industries. The low comprehension of environmentally friendly industries is also indicated by the low implementation of Green HRM in companies in Indonesia. Green Human Resource Management (GHRM) is an environmentally friendly initiative towards better work efficiency, lower costs, and higher levels of employee involvement. Green HRM plays an important role in organizations to support the resolution of environment-related problems, awareness of the use of more economical natural resources and support environmentally friendly products. The realization of this problem will help organizations to create energy-efficient work areas. This study uses an exploratory approach which explores the dominant factors that construct green behavior in green HRM practices on the employees of “The first movers on sustainable banking” in Indonesia. Based on the analysis using the Principal component analysis method and narrative literature review, factors that form environmentally friendly behavior in HR management practices, includes: (1) regulation; (2) environmental awareness; (3) leader commitment; (4) vision and mission; (5) organizational policies; (6) technology provision; (7) facilities; (8) organizational programs; (9) employee recruitment; (10) employee training; (11) performance appraisal; and (12) compensation program.