Nowadays, the world of economics has developed in terms of science and technology. We cannot deny that it has influenced our daily lives and obviously has an impact on the world of economics, but new techniques and solutions are introduced into 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 performed (Möhlmann & Zalmanson2017). It helps and grows the "gig economy". Let's start with a definition of the gig economy given by Alex Wood which is a temporary work position (such as freelancers, independent contractors, etc.) in which workers receive jobs or tasks commanded not by a human manager, but by an app (Alex et al 2018). For example, Uber Eats is an on-demand food delivery app where the customer can choose menu items from local restaurants that have a partnership with Uber Eats (O'Connor 2016). Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get Original EssayHealy explained that there are three variables to drive Uber Eats business which are an “App,” which customers/users must download and register in order to use. Secondly, Customer: Customers need to specify their location and time period and can also indicate the price range they can request. Finally, vendors are suppliers such as the restaurant that sells the meal or the driver who is willing to deliver the meal to customers (Healy, Nicholson & Pekarek 2017). However, Uber Eats workers are different from office workers at other companies where Uber Eats drivers can work any time they want with a flexible schedule. They just need to log in to the app when they want to work and log out after they are done (Nat 2018). From the example given it is not possible to really classify whether algorithmic management in the gig economy is approaching dystopia or utopia. For example, one company employed thirty people to pack rice into a bag and estimated it could complete hundreds of packages in an hour. If this company gets an automatic computer-controlled rice packing machine, it will only need twenty minutes to complete a hundred packages and it will only need one person to control or operate the machine and the machine will do everything the same work that should have been done by thirty people, but can be done by one person. On the contrary, the machine is actually more efficient in using manpower. But this does not mean that the machine does not have defects during the packaging process. This is a fact that in the modern world, the organization intends to use modern technology to carry out the production on site. Therefore, this will increase the line production and reduce the labor cost. This article will examine the effects of algorithmic management in the gig economy, analyze classical management theories and show how it relates to algorithmic management in the gig economy, and decide whether it is dystopia or utopia. The author stated that the share of US workers in the gig economy is increasing, rising from 10% in 2005 to 16% in 2015 (Hussung 2016). In general, for gig economy workers themselves, the gig economy features many lifestyles, less frustration due to absenteeism, and is flexible. Software and programs now allow gig workers to swap shifts seamlessly and use the robotic system to standardize their work.However, there are algorithm effects in the gig economy, such as unstable earnings, reduced job security, and lack of connection to society (Tores 2018). Significantly, a lack of connection to society also impacts financial insecurity. The author explained that when workers are managed through the notification on their phone, it becomes more difficult to connect or build the network relationship with their boss because when technology intervenes the conversation is reduced (Tores 2018). Therefore, this can distinguish between algorithmic management and classical management. As mentioned above, algorithmic management uses computers to command the business rather than humans. In contrast, classical management focuses on understanding management and how man works with man. It consists of three perspectives which are Scientific Management: This perspective is founded by Frederick Taylor. It focuses on “a better way” to do a job. On the other hand, it aims to improve an individual's productivity (Samson, Donnet & Daft 2016). Taylor developed four principles for his theory of scientific management. As for the first principle, develop the scientifically best method for workers to perform each task. Second, managers should secure and carefully select workers with the right skills for the task. Third, managers must be careful to train and motivate workers. The last principle developed by Taylor was that managers should support workers and be responsible, including carefully planning 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 division of labor (Samson, Donnet & Daft 2016). He believed that an organization based on rationality would be more efficient and adaptable. There are some bureaucratic management rules defined by Max Weber which are: When using the machine, workers must wear ear and eye protection. Workers must provide an accurate schedule, indicating the job and activity. The workshop, maintenance and tasks must be assigned. Workers who are late or absent in excessive numbers without reason, have caused damage to equipment, have reckless or unsafe behavior, theft and bad behavior due to alcohol will be dismissed from the workplace. These are some examples of the rules that Weber has established and provides to the organization for dealing with employees. Therefore, every worker will gain fairness and know what the rules are (Samson, Donnet & Daft 2016). Administrative Management: It is different from scientific management where administrative management focuses on managing an organization as a whole rather than an individual (Samson, Donnet & Daft 2016). Classic management perspectives have given the organization new ideas and capabilities to ensure efficiency and high worker productivity. However, Healy said that nowadays the definition of scientific management has changed to use technology, break down the complexity of jobs/tasks into simple tasks, and use technology to measure workers' performance instead of using humans to do all the above things. . Yet the world of the gig economy has grown, but this leads to a high unemployment rate. Over one million workers in Australia are unemployed due to the growth of the gig economy (Healy, Nicholson & Pekarek 2017). This shows that this causes problems for gig workers in terms of job security and stability. For example, if workers perform temporary work, 2018].
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