The recruitment, monitoring, and evaluation of employees are being revolutionised by the integration of algorithmic systems into human resource management (HRM). Although artificial intelligence (AI) provides unparalleled scalability and efficiency, its increasing impact raises significant concerns regarding psychological well-being, trust, and employee autonomy. The workplace has been transformed by the emergence of algorithmic management, which has resulted in new power dynamics. Decisions are becoming more automated, opaque, and difficult to contest. These dynamics have direct implications for the way in which employees perceive motivation, fairness, and satisfaction in the workplace. Through the mediating functions of perceived autonomy and trust in AI systems, this paper introduces a conceptual framework that establishes a connection between algorithmic management and job happiness. In addition, it suggests that the effects of algorithmic systems on employee outcomes can be mitigated by human-centered AI practices, including transparency, explainability, and participatory design. The framework underscores the necessity for organisations to perceive AI adoption as a profoundly human endeavour, rather than merely a technical process, by incorporating self-determination theory and fairness theory. This study contributes to ongoing discussions on ethical AI and responsible digital transformation in HRM by emphasising employee experiences and psychological requirements. It also offers practical guidance for organisations that are striving to reconcile technological advancement with human dignity and workplace happiness, as well as a theoretical foundation for future empirical research.
Ahmad et al. (Tue,) studied this question.
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