Algorithmic Management

07 Jan Algorithmic Management

Algorithmic management has been defined as a system of control that relies on machine-readable data and software algorithms that support and/or automate managerial decision-making about work (Duggan et al., 2020; Lee et al., 2015; Meijerink et al., 2021; Möhlmann & Zalmanson, 2017). This definition highlights three important features of algorithmic management: (1) machine-readable data as input, (2) automated processing of data, and (3) decision-making and -execution as output (Meijerink et al, 2023).

Algorithmic management enables organizations to quickly scan thousands of resumes, organize a fleet of cars with a relatively small number of managers, balance complex factors to schedule employee shifts, or even monitor worker performance and moods. As a result, algorithms can be cost-effective and yield a high return on investment. Many organizations invest in algorithms to scale up hiring and predict job satisfaction and employee turnover (Cascio & Montealegre, 2016; Susskind & Susskind, 2015).

• Jeroen, Meijerink., Tanya, Bondarouk (2023). “The duality of algorithmic management: Toward a research agenda on HRM algorithms, autonomy and value creation”. Human Resource Management Reviشew, Volume 33, Issue 1, March 2023, 100876.
• Duggan, U. Sherman, R. Carbery, A. McDonnell (2020). “Algorithmic management & app-work in the gig economy: A research agenda for employment relations & HRM”. Human Resource Management Journal, 30 (1), pp. 114-132.
• K. Lee, D. Kusbit, E. Metsky, L. Dabbish (2015). “Working with machines: The impact of algorithmic and data-driven management on human workers”. Paper presented at the proceedings of the 33rd annual ACM conference on human factors in computing systems, New York.
• G. Meijerink, M. Boons, A. Keegan, J. Marler (2021). “Algorithmic human resource management: Synthesizing developments and cross-disciplinary insights on digital HRM”. The International Journal of Human Resource Management, 32 (23), pp. 2545-2562.
• Möhlmann, L. Zalmanson (2017). “Hands on the wheel: Navigating algorithmic management and Uber drivers’. Paper presented at the 38th International Conference on Information Systems, Seoul, South Korea.
• F. Cascio, R. Montealegre (2016). “How technology is changing work and organizations”. Annual Review of Organizational Psychology and Organizational Behavior, 3, pp. 349-375.
• E. Susskind, D. Susskind (2015). “The future of the professions: How technology will transform the work of human experts”. Oxford University Press, USA.
• Maria, Tomproua1., Min, KyungLee (2022). “Employment relationships in algorithmic management: A psychological contract perspective”. Computers in Human Behavior, Volume 126, January 2022, 106997.