Summary
The integration of new technology in the workplace continues to spark intense debate. For years the debate has centered on the fear that robots and computers will displace human workers. Recently, the focus of the debate has shifted: rather than being replaced by computers, more and more employees find themselves managed by computers. Tasks that were once the domain of human managers are now performed by computer systems – a phenomenon known as ‘algorithmic management’.
This report uncovers the adverse consequences of algorithmic management for workers and explores ways to dampen these effects. The study is the first of its kind to systematically examine the consequences of algorithmic management.
The study is based on a large survey conducted among union members in the warehousing and customer service/telemarketing sectors in Denmark, Sweden, Norway, and Finland. The labour markets in the Nordics are characterized by collaboration, strong worker rights and healthy work environments, but even in this context the study shows that algorithmic management poses a great challenge to workers’ well-being.
Algorithmic management is quite widespread in sectors such as warehousing and customer service/telemarketing. In these fields, a significant number of employees reports that computer systems are used to assign shifts and tasks, monitor activities, and evaluate performance.
This use of algorithmic management has several adverse consequences for employees. Workers exposed to algorithmic management experience less job autonomy, increased workloads, and heightened stress levels. Additionally, the study shows that algorithmic management is associated with less trust between employees and management, lower levels of job motivation and satisfaction, and a heightened fear of losing your job.
Importantly, the study shows that these adverse consequences are not unavoidable altogether. High levels of employee influence in the workplace and transparency of company decisions significantly reduce the negative effects of algorithmic management. This is crucial insight for policymakers, unions, and others who want to ensure that the digitalization of work does not compromise job quality and workers’ well-being.
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