Abstract
The utilization of algorithms for automating managerial tasks, known as algorithmic management (AM), has recently increased due to advancements in data analytics tools. Nevertheless, there is a scarcity of empirical evidence regarding their diverse impacts and the factors moderating these effects. In our study utilizing data from the European Company Survey 2019, we aimed to explore the association between AM adoption and both workplace well-being and organizational performance. Additionally, we investigated the moderating effect of employee participation. We found that after accounting for factors such as organization size, sector, age, and country, organizations employing AM had higher performance levels but lower levels of workplace well-being. Moreover, when employee participation was high, the adverse impact of AM on workplace well-being was significantly lower. These findings underscore the importance of employee participation as a crucial mechanism for optimizing the advantages of AM within organizations.