Being managed by algorithms makes coworkers less willing to help each other.
February src5, 2024
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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.
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Armin Granulo is a postdoctoral researcher at the TUM School of Management in Germany. His work explores the impact of modern technology such as artificial intelligence on society, businesses, and the workforce.
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Sara Caprioli is a postdoctoral researcher at the TUM School of Management in Germany. Her work focuses on the effects of creativity and artificial intelligence on human behavior.
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Christoph Fuchs is a professor of marketing at the University of Vienna in Austria. His research is situated at the interface of marketing, technology, and human behavior.
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Stefano Puntoni is the Sebastian S. Kresge professor of marketing at the Wharton School, where he serves as the co-director of AI at Wharton.
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