Algorithmic Management: What Is It (And What’s Next)?
The growth of the “gig economy” in recent years has revolutionised the way that millions of people work. Proponents argue that the gig economy gives people more flexibility and opportunities and lowers barriers of entry to the labour market, while detractors say that it erodes workplace regulations and standards while encouraging businesses to treat workers as increasingly disposable.
No matter which side of the debate you fall on, it’s clear that the gig economy is here to stay. But with more and more people signing up for these flexible and freelance work arrangements, how can businesses manage them effectively?
Enter “algorithmic management”: the use of algorithms to oversee the efforts of human workers. As algorithmic management becomes more commonplace, it’s important to understand what this practice is, the pros and cons of using it, and what the future holds.
What is algorithmic management?
Algorithmic management, as the name suggests, is the use of computer algorithms and artificial intelligence techniques to manage a team of human employees. By collecting massive quantities of data, in particular data about employee performance, algorithmic management seeks to automate large portions of the managerial decision-making process.
