IRC Seminar: When Algorithms are your Boss: Algorithmic Management and Platform Work

Room: HBS IRC Seminar LG01

Lunch:12:30

Seminar start: 13:00

Abstract:

Algorithmic management is governance undertaken by software algorithms to control a multitude of platform workers who carry out tasks on behalf of a platform. The increasing significance of algorithmic management casts new light on the classical principal–agent problem. In particular, algorithmic management serves as a proxy for the platform (as principal) to address its problem of asymmetric information in relation to the platform workers (as agents) doing platform work. However, in view of the divergent interests between platform and platform worker, we surmise that algorithmic management of platform workers leads to tensions between the employment-like and self-employment-like characteristics of platform work. Grounded in our qualitative study of Uber drivers’ behavior in London and New York, we show that the radical exposure, total accountability, and mechanistic decision making of algorithmic management generate such tensions in terms of work execution, work compensation, and sense of belonging. To alleviate these tensions, platform workers seek to block, switch, or game the algorithmic management of their platform work. Our research contributes to the emerging literature on algorithmic management and platform work. Furthermore, contrary to emerging platform literature, it underlines that principal–agent theory is useful for studying the new reality of platform work.