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ALGORITHMIC MANAGEMENT AND AI IN HUMAN RESOURCE PRACTICES: OPPORTUNITIES, CHALLENGES, AND IMPLICATIONS

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Name: Harsimrat Deo
Country: India
Publication Details
Year: 2026
Volume: Volume-13, Issue-1 (January-June)
Page Number: 40-49
DOI: https://doi.org/10.5281/zenodo.18654509
Abstract
ABSTRACT
The inclusion of Artificial Intelligence (AI) and algorithmic management in human resources (HR) has restructured new workforce dynamics and organisation design, transforming how work is organised and performed in the digital age. Drawing on these theoretical perspectives, the present study examines the multi-dimensional impact of AI on HR, focusing on recruitment and selection, performance appraisal, workplace monitoring, employee
engagement, and well-being. Utilising sociotechnical systems theory and synthesising over 50 recent references and empirical research articles, the paper offers an integrated and critical discussion of the implications and ethical issues of the rise of algorithmic HR systems. It discusses how AI-powered solutions can improve decision quality, streamline administrative
tasks and support data-driven talent management decisions. At the same time, it draws attention to concerns such as algorithmic bias, opaque decision-making processes, psychological contract breaches, and the risk of eroding the trust and autonomy of workers. Applying an integrated conceptual lens, which draws on the augmentation-automation paradox, machine learning fairness, and algorithmic transparency principles, we map out routes towards a more inclusive, equitable, and ethically responsible use of AI in HRM. This work has implications for managers, policymakers, and technology developers who seek to reconcile efficiency with human-centric values in the era of innovative technologies.

Keywords: Artificial Intelligence, Algorithmic Management, Human Resource Management, Ethical Implications, Workforce Transformation
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