Transformation From Traditional HRM To Green HRM

In an era where climate change and environmental degradation pose existential threats to our planet, organizations worldwide are reimagining their operations through a sustainability lens. At the heart of this transformation lies a fundamental shift in how we manage our most valuable asset—people. The evolution from Traditional Human Resource Management to Green HRM represents not just a change in practices, but a complete paradigm shift in organizational thinking.

Understanding the Paradigm Shift

Traditional HRM has long focused on maximizing employee productivity, ensuring compliance with labor laws, managing compensation and benefits, and fostering organizational culture. While these remain important, they operate within a framework that often overlooks environmental consequences. Green HRM, by contrast, integrates environmental sustainability into every aspect of human resource management, transforming HR from a support function into a strategic driver of organizational environmental performance.

This transformation is particularly relevant in countries like Sri Lanka, where environmental vulnerabilities including rising sea levels, droughts, floods, and biodiversity loss have made sustainability not just an option, but a necessity. Organizations are discovering that their HR practices can either contribute to environmental problems or become powerful tools for positive change.

Key Differences: Traditional vs. Green HRM

Recruitment and Selection

Traditional Approach: Focus on skills, qualifications, and cultural fit. Job advertisements primarily emphasize role requirements and company benefits.

Green Approach: Incorporates environmental awareness as a selection criterion. Organizations actively seek candidates who demonstrate environmental consciousness and commitment to sustainability. Job descriptions highlight the organization's environmental values and expect candidates to share these commitments.

Training and Development

Traditional Approach: Emphasizes job-specific skills, leadership development, and technical competencies with little to no environmental content.

Green Approach: Integrates environmental awareness training across all levels. Employees learn about waste management, energy conservation, sustainable practices, and how their roles contribute to organizational environmental goals. Training programs include sessions on climate change, carbon footprint reduction, and sustainable business practices.

Performance Management

Traditional Approach: Evaluates employees based on productivity, quality of work, and achievement of business targets.

Green Approach: Incorporates environmental performance indicators alongside traditional metrics. Employees are assessed on their contribution to sustainability goals, waste reduction efforts, energy conservation, and participation in environmental initiatives. Performance appraisals include green behavior as a key competency.

Compensation and Rewards

Traditional Approach: Rewards are tied to individual performance, sales targets, or profit contributions.

Green Approach: Introduces green incentives and recognition programs. Employees who contribute to environmental goals receive special recognition, bonuses, or non-monetary rewards. Organizations celebrate environmental achievements alongside business successes.

The Sri Lankan Context: Leading the Way

Sri Lanka offers compelling examples of this transformation in action. The country's commitment to environmental sustainability has positioned Green HRM at the forefront of organizational strategy across both public and private sectors.

Banking Sector Transformation

Hatton National Bank: Became the first bank in Sri Lanka to achieve complete carbon neutrality across all operations. They reduced paper consumption by 60 percent through digitalization initiatives, converted 95 branch rooftops to solar power, and launched employee-focused programs like the sustainable commuting initiative. Their HR practices now embed environmental responsibility into every aspect of employee engagement.

Commercial Bank of Ceylon: Achieved carbon neutral status and developed green financing targets worth billions. They planted 100,000 trees through employee-led programs and became the first Sri Lankan bank to launch green home loans, directly connecting their HR practices with environmental impact.

Manufacturing Excellence

MAS Holdings: Unveiled what was marketed as the world's first carbon-neutral eco-manufacturing apparel plant. Their transformation involved comprehensive employee training programs, green job design, and integration of sustainability into their corporate vision. Employees at all levels participate in environmental initiatives, demonstrating how Green HRM practices can transform an entire industry.

Implementing the Transformation: A Roadmap

1. Leadership Commitment and Vision

Transformation begins at the top. Organizational leadership must articulate a clear environmental vision and demonstrate genuine commitment to sustainability. This includes allocating resources, setting measurable environmental goals, and holding themselves accountable for progress.

2. Redesigning HR Functions

Every HR function must be examined through a sustainability lens. This involves developing green job descriptions, creating environmental competency frameworks, designing eco-friendly onboarding processes, and establishing green performance metrics. Organizations must move beyond superficial changes to fundamentally rethink how HR practices support environmental goals.

3. Building Environmental Awareness

Creating a workforce that understands and cares about environmental issues requires systematic awareness-building. Organizations should implement comprehensive training programs that educate employees about climate change, resource conservation, and the environmental impact of their work. This awareness forms the foundation for behavioral change.

4. Creating Green Culture

Culture change is perhaps the most challenging aspect of transformation. Organizations must foster an environment where environmental responsibility is valued, celebrated, and expected. This includes establishing green teams, recognizing environmental champions, and integrating sustainability into daily operations and decision-making processes.

5. Measuring and Communicating Impact

What gets measured gets managed. Organizations must establish clear metrics for environmental performance, track progress regularly, and communicate results transparently. This includes monitoring carbon footprint reduction, waste minimization, energy consumption, and employee engagement in green initiatives.

Benefits of the Transformation

Organizations that successfully transform from Traditional to Green HRM report numerous benefits. Research shows that employees involved in environmental initiatives demonstrate greater organizational commitment. Companies experience reduced operating costs through energy efficiency and waste reduction. Brand reputation improves as stakeholders increasingly value environmental responsibility. Employee engagement increases as people find meaning in contributing to sustainability goals.

The banking sector in Sri Lanka particularly demonstrates these benefits, with institutions receiving international recognition for sustainability leadership. Organizations report improved competitiveness in global markets and enhanced ability to attract and retain talent who value environmental responsibility.

Key Benefits Include:

• Greater organizational commitment from employees involved in environmental initiatives
• Reduced operating costs through energy efficiency and waste reduction
• Improved brand reputation as stakeholders increasingly value environmental responsibility
• Increased employee engagement as people find meaning in contributing to sustainability goals
• Enhanced competitiveness in global markets
• Improved ability to attract and retain talent who value environmental responsibility

Challenges and Considerations

The transformation is not without challenges. Organizations face initial costs of implementing green practices, resistance to change from employees accustomed to traditional ways, difficulty in measuring environmental impact, and the complexity of integrating sustainability across all HR functions. Success requires patience, persistence, and genuine commitment rather than treating Green HRM as a public relations exercise.

Common Challenges:

• Initial costs of implementing green practices
• Resistance to change from employees accustomed to traditional ways
• Difficulty in measuring environmental impact
• Complexity of integrating sustainability across all HR functions

Conclusion

The transformation from Traditional HRM to Green HRM represents more than a trend—it reflects a fundamental recognition that organizations must operate responsibly within planetary boundaries. As environmental challenges intensify, the question is not whether organizations should make this transformation, but how quickly and effectively they can do so.

Sri Lanka's experience demonstrates that Green HRM is both achievable and beneficial. From banking to manufacturing, telecommunications to government institutions, organizations are proving that integrating environmental sustainability into HR practices creates value for businesses, employees, communities, and the planet.

The journey from Traditional to Green HRM is challenging but essential. It requires vision, commitment, and systematic change across all HR functions. However, as Sri Lankan organizations have shown, the transformation is not only possible but increasingly necessary for long-term organizational success and environmental sustainability. The future of HRM is undoubtedly green, and organizations that embrace this transformation today will be better positioned to thrive in the sustainable economy of tomorrow.

References

• Ahmad, S. (2015). Green Human Resource Management: Policies and practices. Cogent Business & Management.
• Jabbour, C. J. C. (2011). How green are HRM practices, organizational culture, learning and teamwork? Industrial and Commercial Training.
• Jackson, S. E., & Seo, J. (2010). The greening of strategic HRM. Organization Management Journal.
• Renwick, D. W., Redman, T., & Maguire, S. (2013). Green Human Resource Management: A review and research agenda. International Journal of Management Reviews.