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  • Essay / Algorithmic management in the Gig Economy as a step towards dystopia or utopia

    Nowadays, the economic world has developed in terms of science and technology. We cannot deny that this has affected our daily lives and this obviously has an impact on the world of economy, but new techniques and solutions are being introduced in the business world and this leads to a qualitative and quantitative increase in productivity . Recently, “algorithmic management” has been introduced into the business world. What it does is use computer control instead of the human manager to decide how business operations should be carried out (Möhlmann & Zalmanson2017). This contributes to developing the “gig economy”. Let's start with a definition of the gig economy given by Alex Wood, according to which it is a temporary employment position (such as freelance, independent contractors, etc.) in which workers are given the jobs or tasks controlled not by a human manager, but by an application (Alex et al 2018). For example, Uber Eats is an on-demand food delivery app that allows customers to choose menu items from local Uber Eats partner restaurants (O'Connor 2016). Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Healy explained that there are three variables to drive the business of Uber Eats which is an “app” that customers/users must download and sign up. in order to use. Second, the customer: Customers need to specify their location and time frame and they can also indicate the price range they can try. Finally, sellers are the service providers such as the restaurant selling the meal or the driver ready to deliver the meal to customers (Healy, Nicholson & Pekarek 2017). However, Uber Eats workers are different from office workers of other companies where Uber Eats drivers can work anytime with a flexible schedule. They simply log in to the app when they want to work and log out when finished (Nat 2018). The example given does not really allow us to determine whether algorithmic management in the gig economy is moving towards dystopia or utopia. For example, a company employed thirty people to pack rice into a bag and estimates it can make a hundred packets in an hour. If this company acquires an automatic computer-controlled machine to package rice, the company will only need twenty minutes to do so for a hundred packages and will only need one person to control or operate the machine and the machine will do the same work that was supposed to do it. can be done by thirty people, but it can be done by one person. On the contrary, the machine is indeed more efficient using human power. But this does not mean that the machine does not have defects during the packaging process. It is a fact that in the modern world, organizations intend to use modern technology to produce on site. And thus, it will further increase the online production and reduce the labor cost. This article will examine the effects of algorithmic management in the gig economy, analyze classical management theories, show its connection with algorithmic management in the gig economy, and decide whether it is a dystopia or utopia. The author claims that the share of American workers in the gig economy increased from 10% in 2005 to 16% in 2015 (Hussung 2016). Generally for gig workersthemselves, the gig economy results in many lifestyles, less frustration from absenteeism and is flexible. Software and programs now allow gig workers to swap shifts hassle-free and use the robotic system to standardize their work. However, algorithmics has effects in the gig economy, such as unstable income, reduced job security, and lack of connection to society (Tores 2018). Significantly, lack of connection with society is also affected by financial insecurity. The author explained that when workers are managed by the notification on their phone, it becomes more difficult to connect or build the relationship with their boss because when the technology takes place, the conversation is reduced (Tores 2018) . This can therefore make the difference between algorithmic management and traditional management. As mentioned above, algorithmic management uses a computer to control the task rather than a human. In contrast, classical management focuses on understanding management and how humans work with humans. It consists of three perspectives which are scientific management. This perspective is founded by Frederick Taylor. It focuses on “the best way” to accomplish a job. On the other hand, it aims to improve the productivity of an individual (Samson, Donnet & Daft 2016). Taylor developed four principles for his theory of scientific management. For the first principle, scientifically develop the best method for workers to perform each task. Second, managers must ensure and carefully select workers with the appropriate capabilities for the task. Third, managers must ensure that they train and motivate workers. The final principle developed by Taylor was that managers should support workers and be responsible, as well as in carefully planned work (Samson, Donnet & Daft 2016). Bureaucratic management was introduced by Max Weber. This theory is based on a rational set of structuring guidelines; rules and procedures, hierarchy and clear divisions of labor (Samson, Donnet & Daft 2016). He believed that an organization based on rationality would be more efficient and more adaptable. There are certain bureaucratic management rules defined by Max Weber: When operating the machine, workers must wear hearing and eye protection. Workers must provide an accurate schedule, showing work and activity. Workshop, maintenance and tasks must be assigned. . Workers who are late or absent without reason too often, who damage equipment, who engage in reckless or dangerous behavior, who steal, or who engage in inappropriate behavior due to alcohol, will be removed from the workplace. work. These are just a few examples of the rules that Weber has set and provided to the organization in order to deal with employees. This way, all workers will benefit from fairness and know what the rules are (Samson, Donnet & Daft 2016). Administrative management is different from scientific management where administrative management focuses on managing an organization as a whole rather than an individual (Samson, Donnet, and Daft 2016). Classical management perspectives have given the organization new ideas and skills to establish an efficient and highly productive worker system. However, Healy mentioned that today the definition of scientific management has changed to using technology, breaking down the complexity of jobs/tasks into simple tasks and using technology 2018].