2.

1 Literature review : Equal employment opportunity

Equal employment opportunities (EEO) have two components: a positive duty to
promote diversity at work; and preventing discrimination. (Wellington,2011) According
to Guchait (2007), employee equal opportunity also known as prohibition of employment
discrimination which related to age, religion, race, disability or genetic information, sex,
colour, pregnancy, ethnic and national origin, marital status and health related issue.
Nowadays, Human resource department not merely to provide training and
development or adequate pay to the employees but also have to act as a facilitator to
provide discrimination free environment for every employee in the organization.
Besides, treating employees fairly in the workplace is not just a moral
responsibility. It is also necessary to ensure maximum company growth. When an
employee is treated unfairly, it results in decreased employee morale. Low morale results
in decreased employee productivity.

HR literature suggests that employers have options for removing discrimination in
employment. These include diversity management, whereby any employer identifies
groups of employees in the organisation by age, gender, family status, ethnicity and other
indicators, establishes any particular workplace needs they have, and then designs and
applies distinct policies on such matters as recruitment, promotion, training and
development and salary progression aimed at responding to those needs,
(Dessler, Griffiths, Lloyd-Walker, 2004, 479; Macky and Johnson, 2003, 475).
http://www.mngt.waikato.ac.nz/departments/Strategy%20and%20Human%20Resource%
20Management/airaanz/proceedings/melbourne2008/nonref/papers/T.%20F.%20McGrat
h.pdf (T.F MC graph)


Research shows that equality at work does not just happen. It requires evidence-based
policies that take into account what works best. Reviewing and amending the legislation,
proper resourcing, education of employers and the public about the benefits of equality,
monitoring, reporting and enforcement all play an important part in the success of
equality at work policies. Governments also have a vital role to play, not only in
legislation, enforcement and education, but also as good employers, leading by example.
(Wellington, 2011)
http://www.neon.org.nz/documents/Literature%20Review%20final-24June11.pdf#


Equity provisions are justified largely on the basis that they are good for business: equal
opportunity boosts a companys profitability and makes incredibly savvy business sense
(EOWA 2006a). Treating employees fairly doesnt mean treating them the same. Every
employee will have equal opportunity in getting promotion, reward, training, wages,
retirement, responsibility, vacation, pensions and other benefits. For example, in the
aspect of getting promotion, every employee should be promoted according to their skills,
knowledge and experience they have and should not discriminate them based on their
gender, age and etc (Peetz, Gardner, Brown and Berns, 2008).

Furthermore, organization can achieve equal employment opportunity by apply
organization justice. Organization justice refers to the study of fairness within
organization settings and originates from work in social psychology aimed at
understanding fairness issues in social interactions (Greenberg, 1990a).
There are two components of the organization justice which is distributive justice and
procedural justice. Distributive justice refers to the perceived fairness of the outcomes,
procedural justice refers to the perceived fairness of the means used to determine those
outcomes (Folger and Konovsky, 1989; Cropanzano and Greenberg, 1997).

Distributive justice is concerned with ends (Sweeney andMcFarlin, 1997). Adam the
founder of the social exchange theory, it has used to determine and evaluate fairness.
Adams (1965) suggested that one way to determine whether an outcome was fair was to
calculate the ratio of ones contributions or inputs (e.g education, intelligence and
experience) to ones outcome and then compare that ratio with that of a comparison of
others. Research shows that distributive justice affects attitude and behaviours. In
previous analyses (Colquitt et al., 2001; Cohen-Charash & Spector, 2001), distributive
justice was linked to job satisfaction and organizational commitment. Therefore, job
satisfaction and organizational commitment will hold the impact to employee turnover
intention in organizations.
However, another dimension is distributive justice. It is concerned about the means
(Sweeney andMcFarlin, 1997). According to Leventhal, Karuza, & Fry (1980) suggested
that procedures could be perceived as fair if they met the following six criteria:-
Accuracy: Truthful and correct information need to be gathered and used in the
decision making process;
Consistency: Both temporally and interpersonally, the procedure should
guarantee similar treatment across all people and times;
Ethical: The procedure conforms to the prevailing stands of ethics and morality;
Correctable: The procedures have a means of correcting flawed decisions in
place;
Free from bias: Third party must not have a vested interest in particular outcome
or make decisions based on his or her own personal beliefs; and
Representations: The procedure must insure that all affected parties have an
opportunity to state their concerns and opinions

The Distributive justice is not positive relationship with the turnover intention but it
but procedural justice may result in high psychological attachment with the
organization, especially employees who are been treated fairness by the company
(Samad, 2006).
Overall, these results suggested that procedural justice may be a more important
prediction related to evaluating a company as an institution and its representatives
such as organization commitment. In contrast, distribution justice may be a more
important predictor of personal outcomes such as pay level satisfaction and job
satisfaction (McFarlin & Sweeney, 1992). Organizational justice can be used to
describe the equal employee opportunity and both Job satisfaction and organization
commitment are the impacts for influencing the employee turnover intention.

http://eprints.utar.edu.my/681/1/Factors_Influencing_Intention_to_Quit_Among_Bank_E
mployees_in_Malaysia.pdf




Relationship between equal employment opportunity and
Turnover Intention

The application of equal employment opportunity is important in an organization.
If employees perceived that they are having the same opportunity in their work,
the intention to leave the company will be decrease (Konovsky, 1989).
Organization that provide equal employment opportunity in the work place will
lead the employees feels that the company shows their support and caring about
the well-being will motivated them to continue stay with the organization
(Godfrey, 2010). In order to reduce the turnover intention of the employees, the
researcher suggests that organization should pay attention on the improvement on
the issues which related to the fairness of workload distribution, fair hiring
practices, and enhanced the equal opportunities in career development or
promotion in an organization (Chambers, 2008).

An organization may recognize an employees efforts through offering equal
employment opportunity and also equal benefits. As the return of this
opportunities and benefits, employees will become more committed to the
organization and feel obligated to reciprocate to the organization. It helps in
reducing the turnover intention among employees in the organization (Tansky&
Cohen, 2001). For example, provide equal opportunity for salary growth and
training. Erdogan (2002) stated that lack of equal employment opportunity in the
organization will develop attitudinal outcomes negatively which may lead to the
issue of turnover intention in the organization. Based on the previous studies, lack
of equal employment opportunity in the organization will influenced employees
intention to leave (Poon, 2004).

H0: There is no significant relationship of psychological contract on equal employment
opportunity and intention to leave.
H1: There is a significant relationship of psychological contract on equal employment
opportunity and intention to leave.




















Unequal or substandard wage structures fall under this category as well. " When two or
more employees perform similar work and have similar responsibilities, differences in
pay rate can drive lower paid employees to quit. In a like vein, if you pay less than other
employers for similar work, employees are likely to jump ship for higher pay, if other
factors are relatively equal." (Handelsman, 2009)

Employee perceptions of fairness have a considerable effect upon their motivation,
productivity and morale. These factors all affect the employers labour costs as low
morale and workforce dissatisfaction increase employee
turnover. http://www.enotes.com/homework-help/how-do-employee-perceptions-
fairness-affect-446580

ODonnell and Hall
(1988) argued that simply removing obstacles to womens employment is not an adequate
measure to bring about employment equity; change needs to be achieved by proactively
advocating for greater regulation of employment conditions, a view reinforced by the
negative implications for women of the recent removals of protections for various
employment conditions in Australia (Peetz 2007).