To achieve efficiencies and reduce costs, more and more companies are managing their employees by algorithm. In this article, the authors present some of the first research findings concerning the effects of algorithmic management on workplace dynamics. One important finding is that employees managed by algorithms are less likely than colleagues managed by people to help others. The authors conclude with suggestions for how companies who want to use algorithmic management can mitigate its negative effects.
Algorithms are being deployed to automate managerial tasks in an increasingly wide variety of industries and settings. Amazon, Uber, and UPS, for example, use them to oversee the movements and performance of millions of drivers and warehouse workers, and 7-Eleven, IBM, and Uniqlo use them to track the sales performance of retail workers or assess employee skillsets.