Fostering humanistic algorithmic management: A process of enacting human-algorithm complementarity

Abstract

Unlike traditional employer-employee relationships, contemporary digital platforms use algorithms to control and regulate the crowd workforce. Although prior research has expressed concerns over dehumanization stemming from algorithmic management, limited scholarly attention has been dedicated to exploring how human management can complement algorithmic approaches to address these concerns. Leveraging a case study of an on-demand food delivery platform during the COVID-19 pandemic, we developed a process theoretical model that uncovers several drivers and mechanisms essential for the transition from mechanistic algorithmic management to humanistic algorithmic management. This model elucidates the dynamic substitution and complementarity of human and algorithmic management through four key mechanisms: replacing and dampening, compensating, enabling, and synergizing. It also delineates effective humanistic management actions in scenarios in which algorithmic decisions are insufficient, which contributes to both performance and humanistic outcomes. In the realm of contemporary crowd workforce management, where digital platforms employ algorithms, this research sheds light on the unique and timely insights into the role of human managers in enhancing the strategic and humanistic values of algorithmic technology.