Chapter 09 · Sustainability & AISustainability & AI
Algorithmic management
Definition
The use of algorithms to direct, allocate, monitor and evaluate work — assigning tasks, setting pace and rating performance — with limited human intermediation.
References
This source provides part of the technical or institutional basis for the definition.
This source supports the explanation of how the term is applied, measured or governed in practice.
Overview
What it means
Pioneered at scale by digital labour platforms, algorithmic management now extends into warehouses, logistics and offices. The ILO's 2021 World Employment and Social Outlook documented its effects on platform workers: opacity of ratings, continuous surveillance and weak channels for contesting automated decisions.
How it is used
Organisations deploy workforce-optimisation systems for scheduling, routing and performance management; regulation is catching up — the EU Platform Work Directive (2024/2831) requires transparency about automated monitoring and decision-making systems, human oversight of significant decisions, and a human being behind any decision to suspend or terminate a worker's account.
Why it matters
Algorithmic management is the social dimension of AI in the workplace: efficiency gains are real, but so are effects on autonomy, health and bargaining power. For sustainability frameworks covering decent work, it belongs squarely in scope.
Current status
Directive (EU) 2024/2831: EU member-state transposition deadline 2 December 2026.