In this SIWG session, Philipp Genschel (University of Bremen) will hold a presentation about the concept, the problems, and the prospects of 'global solidarity', while Tiago Vieira (EUI) will present his research on the impacts of algorithmic management on workers' voice, exit, and loyalty.
The concept, the problems, and the prospects of 'global solidarity'
Speaker: Philipp Genschel (University of Bremen, Visiting Fellow Robert Schuman Centre)
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The impacts of algorithmic management on workers' Voice, Exit, and Loyalty – a large N survey of managers' perceptions
Speaker: Tiago Vieira (PhD Researcher, EUI)
As part of the transformation of work and employment relations powered by Artificial Intelligence, algorithms are being used to automate and augment managerial tasks through what is called algorithmic management. The literature is marked by a great divide on its effects. Some works underline its virtues, highlighting how algorithms are fairer and more efficient than human beings and, therefore, indispensable tools for success. In contrast, other studies underline how running workplaces with algorithmic tools may negatively affect workers.
The current article builds on the famous theoretical framework exit-voice-loyalty coined by Albert Hirschman. It investigates how the deployment of algorithmic management tools in a workplace is associated with (i) more significant difficulties in retaining workers (exit), (ii) increased proneness to expressions of workers' discontent (voice), and (iii) worse quality of management-workers relationship (loyalty).
We draw on the 2019 wave of the European Company Survey, where the human resource managers of a large representative sample of companies in EU countries (N = 21,869) were asked for factual information and their perceptions regarding the functioning and working conditions in the company, including on the three outcomes of interest. The main explanatory variable is a synthetic dummy indicator for the use of algorithmic management. We run linear regressions to estimate the association between the presence of algorithmic management and managers' accounts of exit, voice, and reduced loyalty in the workplace they run. The analysis is further deepened with the introduction of moderators for the national unemployment rate and the reported influence of workers on the company’s decision-making processes. Models control for a set of variables related to the working context and circumstances in the company (establishment size, occupational sector, percentage of temporary workers, and use of incentives to employees) and the national context through country fixed effects.
Findings suggest that algorithmic management is associated with turbulence in workplaces. Consistent with our hypotheses, in establishments using algorithmic management, managers declare greater difficulty in retaining employees, workers voice their discontent more, and there is a worse reported management-worker relationship compared to workplaces where this technological approach is not in place.
The link between algorithmic management and exit is lower in countries where the national unemployment rate is higher, while, somewhat surprisingly, higher unemployment reinforces the effect on voice. We do not find that workers' involvement in decision-making makes any difference in managers' difficulty for retaining them, their proneness to engage in collective action, or the quality of their relationship with management.
Overall, we find evidence that the deployment of algorithmic management tools is transforming workplace dynamics, creating a new contested terrain in both platform work and conventional employment settings. Longitudinal and qualitative studies will help us better understand the dimensions and nature of this emerging reality, shedding light on its implications for workers, managers, and organizations as a whole.
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