Implementing the Green HRM in Indonesian Manufacturing Companies

Abstract:

The buzzing world of sustainability has led to soaring growth of literature on green marketing, green accounting, green retailing, green supply chain management and green general management. Green Human Resource Management (GHRM) studies on how this field contributes to preserving the environment are hardly found. The polarization between "best fit" and best practice in HRM make measuring human resource management output challenging. Drawing on the classical Ability Motivation Opportunity (AMO), the  framework  is used to emphasize  the necessity of employees to possess abilities, motivation and be allowed to perform. Structural Equation Modelling (SEM) is used to spot the terrain for further study on green human resources management   in the Indonesian setting. As most innovations are related to technology, this study highlights GHRM practices as a management  innovation in responding to the current trend shifting from pro-economic to pro-social then pro-environment. Under the AMO concept, this study scrutinizes the necessity to initiate GHRM practices in manufacturing companies of Indonesia, mainly those located in East Java Province.  Finally, the model is expected to support the national policy in reducing carbon emission as promised by the Indonesian authority  in the 2009 G20 summit in  Copenhagen.