When HRM Turns Green: Exploring the Role of Psychological Climate in Driving Environmental Performance in Public Hospitals in Pakistan

Abstract

This study will evaluate the impact of Green Human Resources Management Practices—Green Employee Compensation, Green Performance Management, Green Hiring and Recruitment, and Green Training and Development on environmental performance with the moderating effect of Psychological Green Climate (PGC) in public hospitals based in Karachi, Pakistan. The author designed this research under the principles of positivist philosophy with a deductive approach as a cross-sectional survey study. A structured questionnaire on a five-point Likert scale collected data from 350-400 employees working in hospitals. Convenience sampling was used for collecting responses that were later analyzed in Smart PLS-4. The results also show significant effects of green performance management, green hiring and recruitment, and green training and development on environmental performance, while there was no direct significant effect from green employee compensation on environmental performance. PGC strengthens all relationships between GHRM practices and environmental performance, which means that it plays a strong moderating role. Hospitals should incorporate green KPIs into appraisals, plus recruitment of environmentally oriented individuals, along with continuous green training, and a psychologically supportive climate to sustain results. Compensation policies cannot stand alone; they must be enforced under a wider green climate. This study adds to the scanty literature available on GHRM concerning the healthcare sector of a developing country by underscoring the role played by contextual factors — more particularly, that of psychological green climate — toward making HRM practices effective in attaining environmental performance.