When Algorithms Meet Holacracy: Reconciling Automated Supervision with Decentralized Governance in Modern Workplaces

S. Antony Raj, M. N. Aishwarya Anandavalli, Muhamad Romdoni, Ranaweeragei Prasanna Premasiri Ranaweera, Akole Olatubosun Busuyi, Herdi Wisman Jaya Department of Commerce, Faculty of Science and Humanities, SRM Institute of Science and Technology, Kattankulathur, Chennai, Tamil Nadu, India. Department of Criminal Law, Sultan Ageng Tirtayasa University, Serang, Banten, Indonesia. National Institute of Library and Information Sciences, University of Colombo, Colombo, Western Province, Sri Lanka. Williams Olu-Aderounmu Library, Bamidele Olumilua University of Education, Science and Technology, Ikere-Ekiti, Ekiti, Nigeria. Faculty of Teacher Training and Education, Universitas Pamulang, Tangerang, Banten, Indonesia.

Abstract: This paper examines how algorithmic management and flexible organizational structures (e.g., self-management, holacracy) affect worker autonomy, employment relationships, and organizational performance in the gig economy and modern workplaces. Drawing on sociotechnical design, Job Demands–Resources (JD-R) theory, and labor process theory, it provides an integrative framework for understanding modern administrative control. Using an integrative literature review methodology, this study analyses and synthesizes conceptual, qualitative, and empirical research across the management, human resource management, and information systems literatures. The review demonstrates that while algorithmic management promises operational efficiency and task autonomy, it often introduces covert mechanisms of digital surveillance, deskilling, and precarious work conditions. Conversely, self-management frameworks like holacracy can mitigate rigid hierarchies but can also introduce operational friction and implementation challenges when combined with automated steering mechanisms. Organizational leaders and system designers must balance automated efficiency with worker well-being. Implementing socio-technically balanced system design can enhance motivation, reduce psychological strain, and align algorithmic control with ethical labor standards. This study synthesizes distinct strands of literature algorithmic control, self-determination theory, and novel governance structures to offer a holistic perspective on how automated management transforms employment relationships in both developed and developing country contexts.

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Keywords: Algorithmic Management; Gig Economy; Labor Process Theory; Job Demands–Resources Theory; Self-Management; Platform Work.

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Received on: 24/07/2025Revised on: 21/09/2025Accepted on: 22/11/2025Published on: 05/03/2026

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