The Influence of Algorithmic Management on Employees Perceptions of Organisational Justice – A Conceptual Paper

Background: The use of algorithms in organizations has become increasingly common, with many companies transitioning managerial control from humans to algorithms. While algorithmic management promises significantly efficiency gains, it overlooks an important factor of employees’ perception of fairness towards their workplace. Employees pay close attention to how they perceive justice in the workplace; their behavior is shaped by these perceptions. Purpose: This study aims to explore how algorithmic management systems can be designed to balance efficiency with transparency and fairness. So, to foster a sense of justice, organizations should design algorithmic systems in such a way to ensure a transparent decision-making process where employees clearly understand how decisions are made and can trust the outcomes. Method: A review of literature on algorithmic management and workplace fairness was conducted, focusing on the impact of transparent decision-making processes, equitable resource distribution, and constructive feedback mechanisms on employee trust and engagement. Results: Providing timely and constructive feedback and equal distribution of resources can foster a strong sense of fairness, making employees valued and connected to the organization. This will enhance employee trust, engagement, and overall organizational performance, as workers will be more likely to align with the company’s goals when they are treated fairly. Conclusion: Organizations should prioritize fairness and transparency in the design of algorithmic management systems. Treating employees fairly not only strengthens their connection to the organization but also aligns their efforts with its objectives.