General Studies · Human Resource Management
A manufacturing multinational introduces a Green HRM policy linking a portion of employees' variable pay to plant-level carbon emission reduction targets. The trade union objects, arguing that emission levels are influenced by outdated machinery and managerial investment decisions rather than individual employee behavior. Management wants to proceed without diluting its sustainability commitment but also wishes to avoid an industrial dispute. Which of the following would be the most strategically appropriate course of action?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Withdraw the carbon-linked variable pay component and instead impose strict disciplinary penalties for non-compliance with environmental norms.
- 2Re-negotiate the performance-linked component through collective bargaining by incorporating joint consultative mechanisms and shared accountability metrics.✓
- 3Shift the entire emission-reduction accountability to supervisors and exclude unionized employees from the variable pay scheme.
- 4Unilaterally implement the policy under managerial prerogative, as environmental compliance is outside the scope of collective bargaining.
Correct answer
Re-negotiate the performance-linked component through collective bargaining by incorporating joint consultative mechanisms and shared accountability metrics.
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