Algorithmic Management in Data-driven Organizations: Ethics and Responsibility for Effective Change Management

Data is crucial to the economies of the most advanced countries and their innovation processes. The incorporation of Big Data and Predictive Analytics technologies has often been associated with successful decision-making in organizational management, underscoring the significance of a data-driven approach. Data-driven organizations base their decision-making processes on robust data processing, which becomes a strategic asset for improving performance and gaining a competitive advantage. Although algorithmic management offers undeniable advantages in terms of efficient decision-making, its employment requires careful change management within the organization. Its implementation must cover personnel training, compliance with regulations and laws, data privacy, decision transparency and accountability, security and cybersecurity, ethical considerations and potential social, economic, and environmental impacts. This includes, inter alia, minimizing resource usage and the carbon footprint associated with digital systems