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Influence of algorithmic management practices on workplace well-being – evidence from European organisations

Abstract

Purpose Existing literature on algorithmic management practices –defined as autonomous data-driven decision making in people's management by adoption of self-learning algorithms and artificial intelligence – suggests complex relationships with employees' well-being in the workplace. While the use of algorithms can have positive impacts on people-related decisions, they may also adversely influence job autonomy, perceived justice and – as a result – workplace well-being. Literature review revealed a significant gap in empirical research on the nature and direction of these relationships. Therefore the purpose of this paper is to analyse how algorithmic management practices directly influence workplace well-being, as well as investigating its relationships with job autonomy and total rewards practices. Design/methodology/approach Conceptual model of relationships between algorithmic management practices, job autonomy, total rewards and workplace well-being has been formulated on the basis of literature review. Proposed model has been empirically verified through confirmatory analysis by means of structural equation modelling (SEM CFA) on a sample of 21,869 European organisations, using data collected by Eurofound and Cedefop in 2019, with the focus of investigating the direct and indirect influence of algorithmic management practices on workplace well-being. Findings This research confirmed a moderate, direct impact of application of algorithmic management practices on workplace well-being. More importantly the authors found out that this approach has an indirect influence, through negative impact on job autonomy and total rewards practices. The authors observed significant variation in the level of influence depending on the size of the organisation, with the decreasing impacts of algorithmic management on well-being and job autonomy for larger entities.

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Keywords

Details

Category:
Articles
Type:
artykuły w czasopismach
Published in:
Information Technology & People no. 36, pages 21 - 42,
ISSN: 0959-3845
Language:
English
Publication year:
2023
Bibliographic description:
Kinowska H., Sienkiewicz Ł.: Influence of algorithmic management practices on workplace well-being – evidence from European organisations// Information Technology & People -Vol. 36,iss. 8 (2023), s.21-42
DOI:
Digital Object Identifier (open in new tab) 10.1108/itp-02-2022-0079
Sources of funding:
  • Free publication
Verified by:
Gdańsk University of Technology

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