Algorithmization of Management Processes in Gig Economy

Abstract

The article presents the results of the research dealing with the main features of algorithmic technologies application in the implementation of management processes in organizations. It is revealed that the algorithmization of the management processes is used by the companies functioning in the field of the gig economy, but this trend is gradually spreading to other organizations. The article defines the main content of the algorithmic management process in the gig economy. It is indicated that in the gig economy, the construction of labour relations is regulated by algorithmic management, which is a management system implemented by selflearning algorithms that make decisions regarding interaction with gig workers. Algorithmic management makes it possible to automate managerial decision-making processes, track the behavior of gig workers, evaluate their effectiveness, establish principles of interaction between them and the digital platform, and increase the transparency of socio-economic relations. The characteristics are revealed, the structure is presented, and the implications of algorithmic management as an approach to managing organisational innovation are noted. The study found that the considered process regards the organization reform of the company as the key factor of its strategic development and the digital platforms as the tool for cooptation, control, providing incentive and feedback for the gig workers on the basis of confidence-building (loyalty) between the subjects. It should be noted that the use of algorithms in gig economy organisations has a certain impact on gig workers, who can adapt to this trend, express their disagreement or even stop working on the platform. Furthermore, several suggestions on the sustainable development of the gig economy organizations are made. The research confirms the necessity to build the paradigm of the algorithmic responsibility management in order to avoid the company misconduct and to safeguard the rights and interests of the gig economy stakeholders. The key directions for future research are outlined which can extend the scope of algorithmic technologies implementation.