Publication on Algorithmic Management in Traditional Organizations in BISE Journal
The article "Algorithmic Management in Traditional Organizations - Implications for Workers’ Efficiency and Work Relationships" has recently been published.
Traditional organizations are increasingly utilizing algorithmic management (AM) to manage their permanent workers. While existing research has extensively explored AM within platform organizations, there is a need to understand its application in traditional work environments, given the workers’ close connection to the organization and existing work relationships.
Conducting mixed-methods research within an international automotive supplier, we analyzed an archival dataset comprising 12,743 manufacturing errors, complemented by 15 semi-structured interviews with affected workers and managers.
The results provide objective evidence that AM significantly improves efficiency within traditional organizations. In addition, the interviews reveal that human managers maintain a supportive role in this hybrid organizational setting, while established work relationships among co-workers are heavily influenced by AM. This research offers valuable practical contributions for the successful implementation of AM in traditional organizations.