Abstract

The rapid evolution of Digital Human Resources Management has introduced a transformative era where algorithms play a pivotal role in reshaping the landscape of workforce management. This transformation is encapsulated in the concepts of algorithmic management and algorithmic Human Resource Management (HRM). The integration of advanced analytics, predictive and prescriptive analytics and the power of Artificial Intelligence (AI) has given rise to algorithmic approaches that go beyond traditional human-centric decision-making. This paradigm shift is marked by comprehensive data collection, real-time responses to data influencing management decisions and automated decision-making processes. The culmination of algorithmic management is illustrated in a scheme where human-configured management processes are automated, leading to autonomous decision-making by an information system. The ongoing development of AI-driven algorithms, adapting and becoming self-learning, raises the prospect of increased automation, potentially leading to the displacement of human managers. This chapter provides a comprehensive overview of the evolution of algorithmic management and algorithmic HRM, setting the stage for a deeper exploration of their implications on organisational decision-making, employee management and the future of algorithm-supported management. While algorithmic HRM brings benefits to organisations it also poses risks, such as hidden errors and ethical concerns, emphasising the need for transparency and responsible application. Unconscious system errors, especially in fully automated systems, can lead to detrimental personnel decisions. Organisations must actively counteract potential negative consequences, striking a balance between technology and human decision-making, fostering organisational culture that embraces digital transformation while prioritising the human element. Enterprises should view technology as a tool to enhance work processes, focusing on connecting people and technology to create an innovative and inclusive work environment.

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