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New working paper
When Your Boss is an Algorithm
Yotam Margalit and I explore the effect of algorithmic management on worker performance.
Artificial intelligence is becoming an integral part of the workplace and is increasingly used for managerial tasks (e.g., evaluating candidates, allocating ass
papers.ssrn.com
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#AI is becoming an integral part of the workplace and is increasingly used for managerial tasks from allocating tasks, evaluating candidates, and assessing productivity. How do workers respond to algorithmic management? To what extent does it affect their behavior on the job?
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To study these under-explored questions, we conducted a field experiment in which we randomly assigned 1,500 gig-economy workers to either a human or algorithmic manager treatment and varied the type of interaction with the manager.
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Using a range of behavioral outcomes, we find that algorithmic vs human management has substantial effects on the way workers approach and carry out their job.
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Specifically, workers who receive positive feedback from human managers put significantly more care and effort into their tasks and perform more accurately, compared to workers who receive identical feedback from algorithmic management.
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The findings underscore that human recognition is a key motivator: workers who received positive assessments from human managers were significantly more satisfied with their assignments, enjoyed their tasks more, and exhibited greater commitment to working with their employer.
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These results indicate that algorithmic management has underappreciated implications on workers’ behavior on the job.
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The findings point to potential gains from using hybrid solutions that combine algorithmic management with human feedback to enhance workers’ engagement, well-being and overall performance.
#algorithmicManagement #gigEconomy
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