Definition
Algorithmic management refers to the monitoring, evaluation, and direction of work processes and worker behaviour through digital algorithms. In this model, decision-making processes are largely carried out by automated systems.
Scope
Algorithmic management is most widespread in the platform economy, but it is also used in warehouse logistics, call centres, and digital service sectors. These systems organise processes such as task allocation, performance measurement, payment, and supervision on a data-driven basis. Workers are typically managed through applications and digital interfaces, and the pace of work is determined by algorithms.
Distinction
Algorithmic management differs from traditional forms of management in the following ways:
Management processes are carried out by software systems rather than human managers.
Decision-making mechanisms rely on data analysis and automated evaluation systems.
Monitoring is continuous and in real time.
Control over workers becomes less visible but more intensive.
In this sense, algorithmic management represents a more centralised, data-driven, and automated form of control compared to classical management models.
The most prominent examples of algorithmic management can be found in platforms such as Uber, Deliveroo, and Amazon. In these systems, workers’ tasks, performance evaluations, and even dismissal processes can be determined by algorithms.
Evaluation
While algorithmic management offers significant advantages in terms of efficiency and coordination, it raises serious concerns regarding worker autonomy, job security, and transparency. Data asymmetries and the opacity of algorithms are among the key issues of this model. Therefore, algorithmic management calls for a rethinking of control and resistance in digital labour processes.