Impact of Green HRM Practices on Telstra's Profits: A Case Study

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Central Queensland University, Australia
Term – 3, 2018
BUSN20019: Professional Project
Unit Coordinator:
Lecturer:
Assessment: Project Report
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Executive Summary
The research report is mainly focused to identify the relationships and effects of the green HRM
practices on the profits. This research has implemented on the Telstra Company for identification
of the relevance between both variables. A proper literature review has been implemented in the
research to identify the reviews of the different authors on this subject and also to generate a
hypothesis in the research. Quantitative research methodology has applied in the research project
and statistical calculations have been implemented in the research. In this research project data
has been collected from the annual report of the company and PDF related to the authentic
database. It is analyzed that both profits and green HRM practices contain positive relationships.
The green HRM practice has considered as the independent variable and profits considered as a
dependent variable. It has been analyzed that green HRM practices positively effects on the
company.
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Table of Contents
1. Introduction..................................................................................................................................5
1.1 Problem Statement.................................................................................................................5
1.2 Research aim..........................................................................................................................6
1.3 Research Objective................................................................................................................6
1.4 Research question..................................................................................................................6
1.5 Research Hypothesis..............................................................................................................6
2. Literature review..........................................................................................................................7
2.1 Green HRM...........................................................................................................................7
2.2 Advantages of green HRM....................................................................................................7
2.3 Inter-relevance of green HRM practices and profits.............................................................8
3. Methodology..............................................................................................................................10
3.1 Type of research..................................................................................................................10
3.2 Research methodology.........................................................................................................10
3.3 Data collection methods......................................................................................................10
3.4 Data analysis........................................................................................................................11
3.5 Variable specification..........................................................................................................11
4. Findings and analysis.................................................................................................................12
4.1 Descriptive statistics............................................................................................................12
4.2 Regression analysis..............................................................................................................13
4.3 ANOVA test........................................................................................................................13
5. Discussion..................................................................................................................................15
5.1 H0 – Green HRM practices effects on the profits of the company.....................................15
6. Conclusion.................................................................................................................................16
6.1 Addressing aims and research question...............................................................................16
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6.2 Limitations...........................................................................................................................16
6.3 Recommendations................................................................................................................16
References......................................................................................................................................17
Appendices....................................................................................................................................19
Profits and investment in the green HRM practices..................................................................19
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“Impact of Green HRM practices on the profits of the company: A case study of Telstra
Australia”
1. Introduction
Green HRM practices are focused on eliminating the negative effect on the climate by adopting
environment-friendly process and activities of work. Green HRM practice is considered as the
contemporary trend in the market industry. The well-structured organisations as Telstra are using
the green HRM practices to become more climates friendly and to organis organisminimise the
negative influence on the surroundings. This research paper is focused to analyze the influence
of the green HRM practices on the profits of the Telstra Company. In the beginning, this report
will discuss the project background aims, objectives, research questions, and literature review. A
proper research framework will be explained to use in the implementation of the research. After
it, data will be analyzed to produce research findings and make a discussion on the findings. In
the last, some of the recommendations will be proposed for the company.
1.1 Problem Statement
Evolutionary changes in the organisational procedures and working styles has compelled to the
organisation to adopt these to manage competitive advantage. Adoption of changes has
compelled to invest financial resources. Most of the companies which are working in the
international and domestic market with proper hierarchy are focused on adopting changes for
managing its competitive edge. The green HRM practices concept is also considered in the
evolutionary changes. Adoption of green HRM practices has developed the need to make an
appropriate investment in these practices in the whole organisation. The core problem of the
organisation is to manage profitability against the invested resources in the evolutionary changes.
The green HRM practices are mainly focused on the preservation of knowledge capital and also
the implementation of the climate-friendly activities in the organisation.
Telstra Corporation Limited is working in the telecommunication industry of Australia and it is
essential for the company to reduce the carbon emission in the environment by adopting climate-
friendly practices. The company has its mobile and internet network in the whole Australia
which indicates its broad organisational structure and management. It is essential for the
company to identify the positive effect of the green HRM practices on the profits of the
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company. It is essential to analyze the effect of HRM practices on profits. Financial investment
in the green HRM practices is effected or not on the profits of the company. It is essential to
analyze the relevancy of financial investment with the annual profit. It helps the company to
positively invest in green HRM practices to enhance the profits of the company.
1.2 Research aim
To analyse the influence of Green HRM practices on the organisation’s profit – A case study of
Telstra.
1.3 Research Objective
 To determine the Green HRM practices used by the Telstra
 To evaluate the distinct expenditure of HRM in the company
 To analyse the relationship between HRM expenses and profits of the company
1.4 Research question
Primary Research Question
 Does investment in the green HRM practices have positive effects on the profits of the
company?
Secondary research questions
 Does investment in Green HRM helping Telstra to boost its profits?
 What are the advantages gained by organisation by investing in sustainable practices such
as Green HRM?
1.5 Research Hypothesis
H0 - Green HRM practices are positively working for enhancement in the profits.
H1 - Financial investment is increased, and profits declined by using green HRM practices.
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2. Literature review
2.1 Green HRM
According to Dumont, et, al, (2017), green human resource management effects on the
employee’s climate-friendly behaviours. Green HRM is an emerging concept which includes the
environmental management in the organisation. Endorsement of the sustainable practices from
the employees and increase in employee commitments and awareness is considered in the green
HRM practices. As stated by Bangwal and Tiwari, (2015), green HRM practices support to
produce green policies and practices. It supports to fulfil the objectives of the organisation by
climate-friendly activities. Recruitment and selection, performance management, training are the
different HRM functions which are considered in green HRM practices.
According to Bombiak and Marciniuk-Kluska, (2018), green HRM concept enhances the
potentials of the young organisation of survivals. It is analysed that the implementation of the
green HRM practices should be appropriate according to the requirements. Green HRM supports
in the sustainability and also in the attainment of the objectives and targets of the organisation.
Green HRM polishes the reality relatively of the company which can help in the attainment of
the company. As per the views of O'Donohue and Torugsa (2016), consideration of the
environmentally friendly practices supports in the attainment of targets. It is analysed that
investment is enhanced in the activities and practices to make changes in the working process.
This research has implemented on the small firms of Australia. Adoption of environmentally
friendly practices supports the sustainability and production of better outcomes. The core finding
of this study is that green HRM practices support to enhance the financial performance and
benefits of the company.
Hypothesis
H0 - Green HRM practices support to survive in the competitive working environment.
H1 – Consideration of eco-friendly practices creates extra financial pressure on the firm.
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2.2 Advantages of green HRM
According to Guerci, et. al. (2016), green HRM practices supports to make a positive impact on
the stakeholder involvement in the organisation. It helps to manage sustainability and eliminate
the negative effect of the internal working process on the environment. The green HRM practices
are also helping to enhance the decision making effectiveness against the needs. As stated by
Shen, et. al. (2018), green HRM practices support to enhance and develop the climate-friendly
process in the organisation. Employee’s performance is increased due to the enhanced
motivation of the employees in the organisation. According to Pinzone, et. al. (2016), green
HRM practices supports to enhance the collective attitudes and behaviours of the employees
towards the organisation. Collective attitude is developed by the use of green HRM practices in
the organisation. As stated by Nayak and Mohanty, (2017), the competitive business
environment has increased the need to develop and use the competitive edge in the organisation.
It is identified that companies can sustain itself by using eco-friendly working process. Green
process and working environment is a support to develop a healthy working environment and
also in the betterment of the social benefits from the side of the organisation.
Hypothesis
H0 – Climate-friendly HRM practices effects positively on the employee’s engagement.
H1 – Green HRM effects negatively on the employee’s behaviours and attitudes.
2.3 Inter-relevance of green HRM practices and profits
It is analysed that Telstra Company is using green HRM practices on which it has invested $163
million in the year of 2018 in which company has earned the net profit of $3500 million (Telstra,
2018). Profits of the company are higher in the year 2017 which are $3900 million, and
investment in the green HRM is $313 million (Telstra, 2017). In the year 2016, Telstra’s profits
are higher $5800 million and in this year $166 million (Telstra, 2016). Profits of Telstra are
lower in the year 2015 as compare to 2016. In the year of 2015, $4300 million and investment in
the green HRM practices are $113 million (Telstra, 2015). Investments in the green HRM
practices are higher in the year 2014 than 2015 which is $251 million, and profits are the same
$4300 millions (Telstra, 2014). In the year of 2013 net profits after tax are $3865 million and
investment in the green HRM practices $189 millions (Telstra, 2013). In the year 2012, net
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profits after tax is $3424 and investment in the green HRM practices are $162 million. Net
profits in the year of 2011 to 2004 are $3250, $3940, $4076, $3711, $3275, $3181, $4309 and
$4118. Investments in the green HRM practices are from the year from 2011 to 2004 are $224,
$128, $219, $238, $149, $356, $91 and $170 (Telstra, 2012).
Hypothesis
H0 – Investment in the green HRM practices supports to enhance profits.
H1 – Investment in the green HRM practices negatively effects on the profits.
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3. Methodology
Methodological framework is significant to develop in the research which supports in the
research implementation authentically. The research framework provides a way to implement the
research. The authentic research is essential to implement and produce effective research
outcomes (Taktak, 2014).
3.1 Type of research
Exploratory research is effective to explore the relevant information and data about the selected
research topic. This research design is effective to explore the research questions and also to
make in-depth research in a specific research subject. This research is about the investment in
green HRM practices, and it’s the effect on the profits of the Telstra company, so this research
design is effective to implement (Murshed and Zhang, 2016).
3.2 Research methodology
In this research, quantitative research methodology will be used to gather numeric and statistical
data. Statistical data and information are essential to collect in this research to analyse the effect
of green HRM practices on the profits. The quantitative data helps to implement more specific
research to produce outcomes accordingly. Sample size will be lesser in the quantitative research
which helps to the research implementer to make an accurate outcome. Consideration of the
quantitative approach is support to produce relevant and accurate outcomes in the research
(Zhou, et. al. 2012).
3.3 Data collection methods
It is significant to use specific data collection methods in the research to produce specific
outcomes in the research. In this research, secondary data sources will be used to implement the
research which helps to produce better outcomes. It is essential to consider and use the authentic
source of information in this research to manage the authenticity of the outcomes (Saunders and
Bezzina, 2015). This research is based on the Telstra Corporation limited, so it is required to use
realistic and authentic data of the company about the HRM practices. In this authentic research
source of information will be used by the research implemented. The government websites and
the company’s annual report will be used in this research to gather quantitative data to identify
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and analyze the effect. Different research articles and journals are used in the research to gather
information. These research articles and journals are related to authentic database (Knottnerus
and Tugwell, 2018).
3.4 Data analysis
In this research quantitative data analysis will be used which is effective to use in this research.
Numerical and statistical data is used in this research, so quantitative data analysis method is
effective to use in this research. ANOVA test will be implemented in this research to analyse the
effect of green HRM practices on the profits of the company. ANOVA test will be effective to
use which helps to implement the co-relation in between the variables. Regression analysis will
also be conducted in this research which helps to identify the effect of the independent variable
on the dependent variables (King and Mackey, 2016).
3.5 Variable specification
 Dependent variable – Profit
 Independent variable – Green HRM practices
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4. Findings and analysis
4.1 Descriptive statistics
Table 1: Statistical calculation of company profits
Profits($ Million)
Mean 3929.93
Standard Error 167.87
Median 3900.00
Mode 4300.00
Standard Deviation 650.14
Sample Variance 422682.07
Kurtosis 4.29
Skewness 1.64
Range 2619.00
Minimum 3181.00
Maximum 5800.00
Sum 58949.00
Count 15.00
`
The above-presented table has developed a statistical analysis of the profits of the Telstra
Company of recent 15 years. It is analysed that $167.87 million is the standard error which may
deviate on the profits. This research is based on the green HRM practices effect on the profits so
it is essential to make a statistical analysis of the profits.
Table 2: Statistical calculation of company green HRM practices
Green HRM ($ million)
Mean 195.47
Standard Error 18.77
Median 170.00
Mode #N/A
Standard Deviation 72.70
Sample Variance 5285.98
Kurtosis 0.41
Skewness 0.82
Range 265.00
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