BLUF

This article addresses the problem of how human personnel management can co-exist with algorithmic management.

Summary

Algorithmic management is essentially about using algorithms to assign tasks to your workforce automatically.

Algorithms are used extensively within the gig economy and incorporate the following:

  • Monitoring. 
  • Goal setting.
  • Performance management.
  • Scheduling.
  • Compensation.
  • Job completion functions.

Employers' requirements for efficient employees drive algorithmic management systems. However, a review of 45 studies indicates that employees do not like being managed by algorithms. This study showed that algorithmic management has a negative impact on employees as follows:

  • Reduces task variety and skill use.
  • Reduces autonomy regarding when and how long to work. 
  •  Creates uncertainty and insecurity about employee performance and worry about how algorithms rates and ranks employees.

This article suggests the following:

  • That a more people-focused approach be considered.
  • That algorithmic management can coexist with dignified, meaningful work.
  • Transparency and accountability is the key to ensuring workers understand what is being monitored and why.
  • There must be a system to allow employees to talk to a human manager about their concerns.
Learn how a business can introduce algorithmic management without alienating employees.

References