Algorithmic Management in the Digital Transformation of Enterprises: A Qualitative Study of Motivations and Strategic Implications
DOI:
https://doi.org/10.61954/2616-7107/2025.9.4-6Keywords:
Algorithmic Management, Digitalisation, Innovation, Sustainability, Resilience.Abstract
Introduction. With the development of digital technologies and the increasing penetration of artificial intelligence into business, algorithmic management is becoming an integral part of overall organisational management. This study, based on a qualitative analysis of logistics, finance, IT services, and manufacturing organisations, contributes to the understanding of algorithmic management in the development of digital transformation by examining the motivations of workers from different sectors of the economy.
Aim and tasks. This study focuses on introducing and using algorithmic management as a means of successful digital transformation in an organisation. The main aim is to explore the experience of specific business organisations operating in different sectors of the economy regarding the introduction and use of algorithmic management.
Results. The decision to implement algorithmic management is complex, influenced by both internal and external factors, including competitors and technological advancements. Social and ethical aspects relate to efficiency, faster decision-making, meeting customer needs, and fostering innovation. The impact on employees can be defined as two-way: algorithmic management presents an opportunity for better development, but it is also associated with direct concerns about job loss, changes in established work habits, invasion of personal space, and excessive control. Regardless of an organisation’s field of work, ethical dimensions are always present and are perceived as a significant opportunity to overcome the negative consequences of implementing algorithmic management. The consequences reveal differences between sectors: for logistics, the emphasis is on the speed of service; in finance, on transparency and risk management; in the IT sector, on innovation; and in manufacturing, on process optimisation and cost reduction.
Conclusions. In order to be successfully and sustainably implemented, algorithmic management should be part of an overall strategy for the organisation’s development in the context of digital transformation. It is recommended that organisations introduce a phased approach to algorithmic management, with parallel training for employees, the introduction of mandatory mechanisms for transparency in decision-making and uncompromising standards for personal data protection.
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