Green human resources management practices, leadership style and employee engagement: Green banking context

Abstract

This paper discusses green human resource management practices, employee engagement, and transformational leadership in green banking. Specifically, we explore how green human resource management practices influence employee engagement, and how the role of transformational leadership influences their relationships. We used a random sample of 363 green bank employees in Indonesia. Data was collected through online surveys and analyzed using regression modeling. The results show that in general, green human resource management practices are positively and significantly related to employee engagement, and transformational leadership is shown to moderate the relationship. However, specifically, green recruitment and selection only affects the behavioral factors of employee engagement, but not affective and cognitive factors. Meanwhile, training and development only affect the affective factors of employee engagement, but not cognitive and behavioral factors. Furthermore, this research presents novel discoveries regarding how the interplay of contextual and institutional factors between transformational leadership behaviors and green human resource management practices can promote employee engagement.