Algorithmic Management in Organizations? From Edge Case to Center Stage

Abstract

This article offers a comprehensive review of the literature on algorithmic management (AM), focusing on insights from human resource management (HRM), organizational psychology (OP), and organizational behavior (OB). It examines how AM is conceptualized in the contexts of platform work and the gig economy, revealing unique challenges and implications. AM functions as a holistic system, primarily in online labor platforms, where it creates a gray zone in which workers exist in an ambiguous space, neither fully inside nor outside organizational boundaries. This gray zone strategically blurs the lines between employees and freelancers, allowing platforms to circumvent traditional employment regulations. As a result, AM poses a unique challenge for HRM, OP, and OB scholars, whose frameworks typically rely on clear distinctions between employment and freelancing, often overlooking the complexities of this gray zone. The article identifies key themes emerging from the literature, highlighting the impact of AM on both individuals and organizations. It reviews AM in HRM systems, highlighting the interlocking nature, dispersion to new actors, and strategic misalignment of AM-based HRM activities. Its review of AM and careers surfaces the role of algorithmic bosses, multi-actor signaling, and identity challenges that arise from the gray zone. In conclusion, the article summarizes its findings and proposes an agenda for future research. It calls on HRM, OP, and OB scholars to engage with the expanding gray zone of work and careers shaped by platform-based ecosystems and AM, urging them to reconsider traditional boundaries and develop more nuanced approaches to understanding work in this evolving landscape.