Green HRM practices and employee performance of Nepalese commercial banks: Test of AMO model

Abstract

The study aims to analyze the impact of green HRM practices on employees’ performance in Nepalese commercial banks. It is based on the Ability-Motivation-Opportunity Theory (AMO Theory). A quantitative research approach and a correlational research design are adopted. The population consists of the total number of employees (46,408) in Nepalese commercial banks [1]. The minimum sample size for the study is 396 [2]. The convenience sampling method is used to collect the data, which has been organized, sorted, and coded in MS Excel. The Kolmogorov-Smirnov test, Shapiro-Wilk test, construct validity and reliability, Cronbach’s alpha, composite reliability, convergent validity, discriminant validity, multicollinearity, and bootstrapping are conducted and examined using SPSS and Structural Equation Modeling (SEM) in Smart PLS software. The study found a significant relationship between green HR practices and employee performance, confirming the positive effect of Green HRM practices on employee engagement. Overall, it emphasizes the role of green HRM in promoting employee engagement with environmental sustainability initiatives. The study confirms that implementing diverse approaches to improve recruitment practices can foster the integration of an environmentally conscious value system within an organization. Furthermore, incentivizing employees for their environmental performance serves as a powerful motivator, encouraging the adoption of environmentally friendly behavior. Nepalese commercial banks can formulate plans to enforce policies for green practices to create a brand image and sustainable business. Additionally, the commercial banks can focus on the AMO model to train their employees for further encouragement in green practices.