Successful panel discussion on the bright and dark sides of algorithmic management at WI 2022

Algorithmic management implements conventional management functions by using intelligent algorithms and digital technologies. The resulting advantages and disadvantages were discussed in a panel at the 17th International Conference on Wirtschaftsinformatik on Feb. 22, 2022, chaired by Prof. Dr. Alexander Benlian (TU Darmstadt) and Prof. Dr. Martin Wiener (TU Dresden). The panelists (Prof. Dr. Hanna Krasnova (University of Potsdam), Prof. Dr. Alexander Mädche (Karlsruhe Institute of Technology), Prof. Dr. Mareike Möhlmann (Bentley University), Prof. Dr. Jan Recker (University of Hamburg) and Prof. Dr. Ulrich Remus (University of Innsbruck)) gave versatile multi-faceted perspectives on algorithmic management.

With its origins in gig work platforms, such as Uber or Upwork, algorithmic management describes a partially or fully automated delegation of conventional management functions to intelligent algorithms and digital technologies. This makes it possible to control, monitor and coordinate a large number of employees without any interaction between humans and managers. As this is considered very innovative, efficient, and effective; this practice is also arousing increased interest in traditional organizations.

Gig workers often appear as "lone wolves" in the context of algorithmic management: The somewhat misleading “self-employment status” and a declared high degree of suggested autonomy are contrasted by a lack of interaction opportunities, a poor traceability of algorithmic decisions, and a continuous monitoring of behavior. However, these characteristics are also countered by positive aspects: For example, in the context of managing employees, algorithms can have a positive effect on climate-friendly behavior by providing appropriate instructions, monitoring, and ensuring that work safety measures are adhered to, or awarding digital badges by using gamification approaches.

However, not only are the characteristics and properties of intelligent algorithms of considerable importance, but also their initial development and the influence that developers are exposed to. These initiated algorithms continue to develop and learn autonomously and so affect management and control of employees. To function as a fair socio-technical system, the needs of employees must also be included in the development and design of intelligent algorithms to enable joint and mutual learning. 

In the context of the expansion of algorithmic management into traditional organizations and its further development within platform organizations, it is important to mitigate the negative aspects and strengthen the positive aspects. In particular, the interdisciplinary research of business information systems, which explores economic, social and technical topics, can contribute to this, and this is exactly what makes algorithmic management so exciting.