Industrial Management & Data Systems

Emerald Article: Motivating employees for environmental improvement Nalini Govindarajulu, Bonnie F. Daily

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To cite this document: Nalini Govindarajulu, Bonnie F. Daily, (2004),"Motivating employees for environmental improvement", Industrial Management & Data Systems, Vol. 104 Iss: 4 pp. 364 - 372 Permanent link to this document: http://dx.doi.org/10.1108/02635570410530775 Downloaded on: 29-03-2012 References: This document contains references to 64 other documents Citations: This document has been cited by 6 other documents To copy this document: [email protected] This document has been downloaded 38982 times.

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Motivating employees for environmental improvement

Introduction
Clearly, in the twenty-rst century businesses are taking a more strategic approach to environmental management. Conventionally, a majority of US corporations have used the compliance approach in their environmental programs driven by laws and regulations. However, in the past several years, environmental forces such as consumer boycotts, dynamic preferences, and new customer requirements have affected basic business strategies as well as corporate core values (Bhushan and MacKenzie, 1994; Quazi, 2001). It appears corporate strategies for environmental management are evolving from pollution control to pollution prevention (Brockhoff et al., 1999). Presently, there is signicant research espousing the virtues of implementing an environmental management system (EMS) (Inman, 1999; Klassen and McLaughlin, 1993). Many articles in the literature provide technical details of developing an EMS, yet it appears little discussion has been provided on the effect of such programs on employees. Although, some researchers have suggested that employee attitudes regarding implementation of an EMS may affect environmental performance (Daily and Steiner, 2001). Certainly, it seems apparent that any new management programs success may hinge on how employees respond. This paper provides an overview of the current management literature regarding increasing employee motivation for environmental improvement efforts. Based on the literature review, four factors: management commitment, employee empowerment, rewards, and feedback and review stood out as key elements in encouraging employees for enhanced environmental performance. Figure 1 presents an overview of the four factors and their association to environmental performance.

The authors
Nalini Govindarajulu is a PhD Candidate and Bonnie F. Daily is an Associate Professor, both in the Management Department, New Mexico State University, Las Cruces, New Mexico, USA.

Keywords
Human resource management, Management qualities, Empowerment, Feedback, Environmental management

Abstract
This paper presents a theoretical framework for environmental performance by looking at the crucial employer and employee factors affecting environmental performance. The model focuses on the integration between top management commitment, employee empowerment, rewards, feedback and review, and environmental performance. Suggestions for managers on implementing core concepts from the model, in addition to the challenges they may encounter are discussed throughout the article.

Electronic access
The Emerald Research Register for this journal is available at www.emeraldinsight.com/researchregister The current issue and full text archive of this journal is available at www.emeraldinsight.com/0263-5577.htm

Management commitment
According to Argyris (1998, p. 99):
Commitment is about generating human energy and activating the human mind. Without it, the implementation of any new initiative or idea would be seriously compromised.

Industrial Management & Data Systems Volume 104 Number 4 2004 pp. 364-372 q Emerald Group Publishing Limited ISSN 0263-5577 DOI 10.1108/02635570410530775

Commitment from top management is like a framework for environmental improvement. Top management decides the environmental policies to establish, the level of training and communication required. Sans a solid framework, it is almost impossible to motivate employees to take effective steps for environmental improvement.

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Figure 1 Motivating factors for environmental performance

It is necessary that management provide commitment to environmental improvement efforts by adopting a formal EMS. An EMS provides a format that allows management the ability to better control the companys environmental impacts (Barnes, 1996). An EMS includes documentation of commitment and policy, planning, implementation, measurement and evaluation, and review and improvement (Hersey, 1998; Lin et al., 2001). Recently, a new template for development of an EMS has been provided in the form of the ISO 14000 guidelines. Similar to the ISO 9000 Quality Management Standards, the ISO 14000 series was created by a collaboration of 90 standard setting groups and over 100 countries involved in the International Organization for Standardization. Essentially, the ISO 14000 guidelines delineate the international standards for systems of environmental management (Begley, 1996). The ISO 14000 series consists of 20 environmental standards that are voluntary and process-based (Barnes, 1996; Hersey, 1998). According to Sroufe et al. (1998, p. 5) to date, ISO 14000

standards may be the best example of a structured EMS. Through either implementation of an EMS or ISO 14000 certication, management clearly establishes its commitment to environmental improvement. A formal structured program sets the stage for increased employee awareness of environmental issues and its signicance to the organization (Barnes, 1996). Essentially, the EMS structure provides purpose for environmental improvements. Lacking a clear purpose, employees often are decient in their enthusiasm to take on new responsibilities or get involved (Ramus, 2001). On adoption of a formal environmental management program, senior administrators must address issues of organizational culture. Organizational culture is composed of a set of assumptions and values that guide individuals daily work behaviors (Brockhoff et al., 1999; Wilms et al., 1994). Several researchers have noted that one of the reasons for the failure of an organizational change effort is that the management ignored the strength of cultures

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(Harris and Ogbonna, 1998). It is important to consider organizational culture, because companies with rigid, top-heavy, and bureaucratic structures have a more difcult time implementing changes than a company that has a exible and lean organizational structure (Janson and Gunderson, 1994). Thus, motivation for environmental improvement efforts may be supported or undermined by the organizational culture. Management commitment must include a culture that encourages innovation and risktaking. Values, norms, attitudes, and behaviors that promote environmental improvement efforts have to be supported (Ramus, 2001). According to Wilms et al. (1994, p. 108)
People will follow managements direction. Whatever management does, and in what direction they push, and how hard they push dictates where this company eventually goes.

According to Kitazawa and Sarkis (2000) cultural change is necessary to support the implementation of environmental source reduction. Top management within an environmentally-conscious organization should strive for a strong culture that allows its employees the freedom to make environmental improvements (Mallak and Kurstedt, 1996). Employees should be allowed inputs for enhancement and time for experimentation (Woods, 1993). Employees should be able to make changes to improve the environment without excessive management intervention. Therefore, management can demonstrate its commitment to environmental endeavors by adoption of a participative culture. In addition to setting a participative culture, management communication of goals and priorities will be essential in motivating employees for action. According to Gupta and Sharma (1996, p. 45):
The environmental goals of the company should be communicated to the workers. Standards of performance, especially with respect to environmental concerns, must be subject to continuous improvement over time to reach the goal of zero emission and zero waste.

Environmental programs, initiatives, and goals of an organization should be communicated frequently so the employees know what is expected to accomplish the goals. Recent research suggests strongly that employees do not feel properly informed regarding environmental issues (Madsen and Ulhoi, 2001). Furthermore, studies suggest that employees are more willing to undertake environmental initiatives when their supervisors embrace a democratic and open style of communication in regards to environmental ideas (Ramus, 2001; Ramus and Steger, 2000).

Another element essential in signifying managements commitment to environmental improvement is the provision of specic training. Researchers have determined quality management efforts demand extensive on-the-job training and continual educational efforts to achieve continual improvement (Cook and Seith, 1992; Curkovic, 1998). In the same fashion, successful environmental improvement mandates employees receive thorough training. Insufcient training may result in employees who are unable and unwilling to participate in environmental improvement efforts. Moreover, the need for cultural transformation in adoption of a formal environmental management program necessitates training. Through education and training, employees become more aware of the need for quality and environmental control, increase adaptability to change, and change to a proactive attitude (Wong, 1998). Additionally, commitment to ongoing environmental training enables employees to contribute on a daily basis to specic pollution prevention endeavors (Theyel, 2000). Also, companies may need to conduct environmental training programs for several other reasons, including: a change in the corporate environmental philosophy, heightened liability concerns, and a complex regulatory climate (Cook and Seith, 1992). Establishing specic training efforts regarding environmental issues may lead to the following benets: compliance with regulatory requirements, organizational denitions of employee responsibility and liability, a positive public image, employee encouragement to become stewards of the environment, and employee motivation to participate in proactive environmental management (Cook and Seith, 1992). Companies committed to environmental excellence require resources to support the training effort, whether it is nancially or organizationally (Cook and Seith, 1992). A company can devastate its efforts to become environmentally responsible if there is little or no support to train and encourage its employees to do the right thing. Other than specic environmental training programs, additional types of training such as interactive skills, team building, benchmarking, brainstorming, and consensus building will help promote a culture where employees feel enabled to participate in environmental improvement (Begley, 1996; Woods, 1993). It is critical for managers to train new employees and continue education of current staff. Managers can focus their training efforts on front-line employees and those who have a direct inuence on the environment, but should not neglect other

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employees in the organization. A company may enhance its ability to abide by environmental policy if it trains employees throughout the organization. At Dusquesne Light, an electric utility company at Southwestern Pennsylvania, managements commitment to environmental training across the organization was believed to be a signicant factor in the companys ability to comply with new and existing environmental regulations (DeLeo, 1994).

Employee empowerment
Authors Leitch et al. (1995, p. 72) described employee empowerment as:
. . . the importance of giving employees both the ability and the responsibility to take active steps to identify problems in the working environment that affect quality or customer service and to deal effectively with them.

described as a participative process to use the entire capacity of workers, designed to encourage employee commitment to organizational success (Cotton, 1993, p. 3). In addition, Enander and Pannullo (1990), believe EI may affect cultural change and signicantly reduce pollutants at their starting place. Since many of the efforts in pollution prevention rely on employees working and interacting with other departments, EI becomes a necessity to improve chances for success. According to Denton (1999, p. 111), Good EI planning and activities are the key to pollution management. A management initiative without EI is useless. Furthermore, in a study by Hanna et al. (2000) data from 349 EI projects were analyzed to determine the relationship between operational and environmental performance. According to (Hanna et al., 2000, p. 160):
. . . results support the concept of a positive relationship between operational performance and environmental performance . . . and that the key to this positive relationship may be employee involvement itself.

According to Argyris (1998, p. 98), a CEO once said: No vision, no strategy can be achieved without able and empowered employees. Moreover, empowered employees are not only preferable but also essential to implement the organizations goal to be scally sound and environmentally responsible (Enander and Pannullo, 1990). The introduction of a new program will yield optimal results when employees are treated as major stakeholders in an organization (Mohrman et al., 1996). Empowered employees are motivated and committed to participate and engage in good environmental practices. Employees who are not empowered have less commitment for improvement than the empowered employees (Argyris, 1998). Management can encourage employee empowerment by changing the organizational structures that support empowerment (Leitch et al., 1995). One way that management can encourage employee empowerment is by changing the form of the organization. The traditional top-down organization inhibits employee empowerment; instead, a atter, horizontal organization should be in place to encourage employee empowerment. Companies need to shift to a more open form of participative management in order to empower their employees (Mallak and Kurstedt, 1996). Workers can contribute more effectively when management moves the decision power down to the employees, allowing them the freedom and power to make suggestions and implement good environmental practices (Wever and Vorhauer, 1993). Empowered employees who have autonomy and decision-making power are also more likely to be more involved in the improvement of the environment. Employee involvement (EI) can be

Motivating employees for greater participation in environmental improvement efforts may also require employment of teams. The use of team-based EI programs has become a major trend. Such programs are particularly popular in manufacturing organizations, where manufacturing strategies, competitive pressures, and advanced technology require shop-oor employees to take more responsibility (Magjuka and Baldwin, 1991). As Magjuka and Baldwin (1991) found in their study, teams well designed for EI programs are perceived to be the greatest contributor to improving organizational performance. For example, Frey and Stephens (1990) reported that teams designed for EI in a Midwestern manufacturing plant helped to gain team members a comprehensive view and make them listen with feeling. Ultimately, teamwork resulted in mostly small, but signicant gains. Thus, the use of teams in conjunction with extensive EI efforts may be conducive in encouraging employees to actively partake in proactive pollution prevention efforts. For example, Beard and Rees (2000) describe green teams used in a UK local authority, Kent County Council. The authorss state that the teams were used to generate ideas, enhance learning experiences, explore issues, identify conict and focus action to enhance understanding about why, what, how, where, and when to pursue the best practicable environmental options (Beard and Rees (2000, p. 27). In addition, cross-functional teams may be particularly helpful in achieving environmental

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improvement across departments. Environmental improvements (ex: pollution prevention at the source) require changes in the manufacturing, planning, and purchasing areas (Kitazawa and Sarkis, 2000; Lent and Wells, 1994; Zsidisin and Hendrick, 1998). Cross-functional teams may help achieve this need coordination across departments. Benets of such teams include: collective knowledge to develop comprehensive solutions, avoiding duplication of efforts, accomplishing many tasks simultaneously, and empowering employees (Cai et al., 1999; Leitch et al., 1995).

Rewards
A well-designed reward system can be helpful in promoting employees to perform sound environmental practices. According to Herzberg (1966) work rewards refer to the intrinsic and extrinsic benets that workers receive from their jobs. Rewards can be a reinforcement to continuously motivate and increase commitment from workers to be environmentally responsible. There has been some literature that has shown that reward systems can motivate and reinforce employees to be environmentally responsible (Laabs, 1992; Patton and Daley, 1998). Companies that value environmental performance need to make parallel the performance evaluation system with the managerial system in their corporate environmental objectives (Epstein and Roy, 1997). Reward systems and incentives need to reect corporate commitment to the importance of environmental performance (Lent and Wells, 1994). Rewards can be implemented in several forms such as nancial rewards and recognition awards. Award and recognition programs, prot-sharing programs, increase in pay, benets and incentives, and suggestion programs are some of the systems that can be used to reward employees for good environmental practices (Atwater and Bass, 1994; Laabs, 1992; Leitch et al., 1995; Marks, 2001; Patton and Daley, 1998). Monetary rewards may be one of the strongest motivators for inducing employees to participate in environmental improvement efforts. Research suggests that monetary rewards signicantly affect job satisfaction and work motivation (Lawler, 1973). A recent study of worldwide environmental companies indicated that even in companies that encouraged EI, the nancial incentives, such as bonuses, incentives, or salaries were rarely tied to environmental performance (Denton, 1999). In some cases, supervisors have indicated that

additional compensation should be given to employees for giving them the additional responsibility of participating in environmental improvement efforts (Forman and Jorgensen, 2001). In this regard, managers need to decide if environmental initiatives or improvements should be a part of employees performance appraisal, as it could be a major motivating factor for some employees (Denton, 1999). On the other hand, research also suggests that employees are not likely to be motivated by money all the time. In fact, innovative non-monetary rewards like paid vacations, time off from work, favored parking, or gift certicates can be quite effective in encouraging employees (Bragg, 2000; Geller, 1991). There is anecdotal evidence that some businesses are stimulating environmental activities through non-monetary rewards. For example, Dow Chemical, a leading environmental rm, motivates its employees by awarding plaques to employees that come up with innovative waste reduction ideas (Denton, 1999). Some employees may be more motivated by recognition and praise than other factors. In a nationwide study, employees admitted that they would do their best if their input was recognized (Jeffries, 1997). Research indicates that employees expect appreciation from supervisors, colleagues and even their families for their effort (Miller, 1991) and, often, praise beats out monetary rewards (Kohn, 1993). An empirical study by Ramus (2001) has shown that supervisory behaviors that encouraged daily praise and environmental awards were ranked as being among the most important factors for environmental innovativess and problem solving by employees. Similar studies in Dutch companies have also shown that recognition awards for innovative ideas pertaining to environmental improvements have worked for employers as well as employees (Cramer and Roes, 1993). These awards are usually given in the form of plaques, personal letters of commendation, publication of employees outstanding inputs towards improvement, recognition in the companys newsletters, and merit certicates to individuals and teams (Enander and Pannullo, 1990). Parker and Wright (2001) indicate that devising a good reward system is not sufcient; it also has to be backed by effective communication of the reward plans. All aspects of the reward system, including accommodating work arrangements and other features of employee welfare, should be clearly conveyed to employees. McConnell (1997) and Geller (1991) suggest that group meetings could help employees in getting a better focus of what to do. Geller (1991) recommends that top management could give formal presentations using

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lms, lectures and demonstrations to educate employees the importance of safety in the workplace. These same techniques should also apply when engaging employees for environmental initiatives. Managers cannot follow a one program ts all approach to employee incentives. They must keep in mind the different motivating factors of the various employees in the organization and develop a reward system that satises everybody. In addition, it is up to managers to observe what factors motivate employees and customize compensation packages to suit each employee (Barrier, 1996; Geller, 1991). For employees to stay committed to company goals and the organization itself, they should be satised with their compensation packages (Parker and Wright, 2001). Sometimes, negative reinforcement may be necessary for making employees perform certain tasks including environmental improvement efforts. For instance, if punishments like suspension, criticism, warnings, etc., are given for sloppy handling of solid or hazardous waste, employees may not indulge in such behaviors. On the other hand, this does not teach them how to properly dispose the waste. Therefore, while negative rewards can avoid certain kinds of behaviors, it may not be the right thing to do. The drawbacks of punishments are turnover, absenteeism, and self-protective behaviors (i.e. failure to disclose environmental problems when they arise). Research has shown that positive rewards are generally more effective motivators than their negative counterparts (Lawler, 1973). Regardless of the type of rewards used, the benets should t the needs of the employees. Reward systems can be used systematically to motivate employees to perform desired behaviors so that both the company and its workers can benet from the program. It is important for managers and supervisors to not only reward employees for quality and daily work efforts but also for innovating environmentally-sound processes and products.

Feedback and review

environmental management programs fail to stress the importance of feedback on environmental issues. Chinander (2001) also suggested that feedback ensures employees know their responsibilities and communicates the link between their performance outcomes and rewards in environmental endeavors. Furthermore, it has been shown that employees value verbal feedback from supervisors as much as formal rewards (Ramus, 2001); informal verbal feedback in addition to formal written feedback may help motivate employees for environmental improvement. The enthusiasm and interest that is often associated with project initiation and the early stages of implementation of an environmental program may wane over time. Moreover, the focus and goals of the program may need adjusting after implementation. If an EMS is successful it would be expected that change has occurred; thus, requiring an overview and readjustment to new goals and initiatives. Hence, employees need continual feedback concerning their impact and effectiveness on environmental improvement efforts. Without appropriate feedback and communication, employee efforts may come to a standstill. It must be noted that a positive feedback environment should be based on trust between supervisors and employees and that employees solicit accurate and complete information regarding their progress (MacStravic, 1990). Employees will therefore need communication of specic environmental improvement measures. This requires that the organization conduct thorough environmental monitoring on a continuous basis. The EMS system should seek to measure results in environmental improvement, identify improvements, and the weaknesses or aws still existing in the organization. These weaknesses should be minimized so that environmental performance can improve. Some of the guidelines of the ISO 14001 standard include monitoring environmental performance and advancement made towards attaining environmental targets. Moreover, ISO 14001 requires correction of any problems and prevention practices be put in place (Hersey, 1998; Peacock, 1993). ISO 14001 also includes comprehensive review and documentation of the whole process by top management (Hersey, 1998; Rondinelli and Vastag, 2000; Sierra, 1996; Zabihollah and Rick, 2000). Authors Cramer and Roes (1993); Zabihollah and Rick (2000) take it a step further and stress that EMS policies and procedures should be monitored by all employees in the

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organization, thus, creating a automatic and systematic review and feedback program. Another form of review and source of feedback is the environmental audit. Essentially, an EMS is not complete without auditing procedures or policies in place. One of the most imperative guidelines recommended by the ISO 14001 standard is the periodic auditing of a companys EMS by independent and well-trained auditors. According to Rezaee and Elam (2000, p. 68) an environmental audit is:
[. . .] the systematic, documented verication process of objectively obtaining and evaluating audit evidence to determine whether specied environmental activities, events, conditions, management systems, or information about these matters conform with audit criteria and communicating the results of this process to the client.

Furthermore, environmental auditing helps companies comply with environmental laws and regulations in addition to its own goals and objectives (Rezaee and Elam, 2000). Hence, the written report received from the environmental auditor may be used to communicate areas for environmental improvement to employees. Thus, audits are a great source of environmental feedback.

Conclusion
It is a misnomer that environmental improvement efforts benet only society or the community. Employees themselves, in addition to companies incorporating improvement practices, can also accrue several benets. For instance, some of the gains to an organization that can result from introducing employee empowerment and EI in environmental improvement efforts include: . improvements in environmental health, worker health, and safety (Atwater and Bass, 1994); . improvements in economic, liability and public image (Barnes, 1996); . development of more knowledgeable supervisors and employees; and . reduced environmental impact of the company, improved competitiveness, and increased overall company performance (Enander and Pannullo, 1990). In addition, it may be assumed that employees actively involved in environmental endeavors may signicantly enhance a companys chance for superior environmental performance. Employees who feel empowered to make changes for environmental efciencies may provide opportunities for improvement to the product and

reduce waste. This should lead to a greener product and green savings from waste elimination. These efciencies should also, in some way, either indirectly or directly, increase customer satisfaction. Many customers today are specically asking their suppliers to adopt environmental standards. This article has outlined the crucial steps that organizations should take when implementing an environmental improvement program to ensure employee motivation. In particular, there are several implications for managers and supervisors that attempt to bring about changes in employee behaviors in the organization. We recommend that while top management should provide a framework by formalizing the EMS and communicating the importance of employee motivation in environmental improvement, managers and supervisors should also actively involve employees at all levels towards fullling environmental improvement goals (see Figure 1). Therefore, the importance of empowerment and continual feedback and review cannot be understated. It must be noted that these factors are dynamic in nature and the relationships between them continuously evolve and change. We stress that the relationship between these major elements be given careful thought and consideration if environmental improvements are desired. Furthermore, it is important to remember these factors do not stand alone; for example, rewards alone will not lead to signicant environmental improvement, but rewards in conjunction with feedback, empowerment and clear communication can lead to environmental enhancements. Moreover, it is imperative that researchers and practitioners continue to examine ways that employees are motivated to improve environmental conditions. Additionally, further research is required to measure the factors proposed in this model and provide a comprehensive framework for managers on the factors that inuence employee motivation.

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Nalini Govindarajulu and Bonnie F. Daily

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