Hiding Behind Algorithms: People Analytics and Perceived Fairness Violation in Managerial Decisions
ECIS 2024 Proceedings, 16, Association for Information Systems, (May 2024)Abstract
People analytics – algorithmic systems in personnel management – constantly collect and process employee-generated data. This allows the systems to generate actionable insights to support managerial decisions. Thus, People analytics can become a mediator between managers and employees, challenging and redefining their dynamics, relationships, and communication. We conduct an online experiment where participants take the role of employees, performing a real effort task. In manipulated scenarios, rewards for completing the task are either distributed by a team leader without algorithmic support, a team leader with the option of algorithmic support, or a team leader who delegates the process of rewarding employees towards an autonomous system. Our results indicate that the involvement of PA has downstream consequences and induces feelings of unfairness and betrayal, which ultimately increase demands for reparation and general retaliatory behaviour against the manager and the organisation.