7. Algorithms 2023
7. Algorithms 2023
ORGANIZATIONS
Agenda
5
Consequential aspects of learning algorithms
1. Black-boxed performance
2. Comprehensive digitization
3. Anticipatory quantification
4. Hidden politics
https://www.interaction-design.org/literature/article/human-data-interaction-hdi-the-new-information-frontier
Data side: Design for ambiguity
§ Individual understanding and attitudes change
over time.
§ Data systems should reflect:
§ current social norms around data
§ different legal and regulatory frameworks that apply
§ the ways in which data is often ambiguous in its
subject and its meaning
§ Many algorithmic systems are designed to be
over-confident. The probabilistic calculations
are usually hidden from users and results are
presented as facts.
(Gal, Jensen and Stein, 2020)
https://www.interaction-design.org/literature/article/human-data-interaction-hdi-the-new-information-frontier
Data side: Design for agency
https://www.interaction-design.org/literature/article/human-data-interaction-hdi-the-new-information-frontier
Garbage in-garbage out
Workers who feel vulnerable reduce the quality of their system use
Algorithm games
Algorithmic decision-making is a dynamic process.
Algorithms attempt to estimate some difficult-to-measure quality about a subject using proxies.
The subjects (e.g., employees) in turn change their behavior in order to game the system and get a better treatment for themselves (or, in
some cases, to protest the system).
These behavioral changes can then prompt the algorithm to make corrections.
As the game escalates, you have adverse effects on algorithm accuracy, distributional fairness, and efficiency, and human autonomy.
Bambauer, J., & Zarsky, T. (2018). The algorithm game. Notre Dame L. Rev., 94, 1.
Take-aways
§ Algorithms can reshape organizational structures and enhancing
operational efficiency.
§ Their 'black-boxed' nature present challenges to transparency
and accountability.
§ Pervasive digitization of activities plays a critical role in vast data
generation for refining algorithmic accuracy and relevance.
§ There are embedded politics in algorithm design, reflecting
values and biases of creators, and their broader societal
implications.
§ Responsible management in the era of algorithms highlights need
for a balance between human intuition and algorithmic assistance
§ An alternative way of creating algorithms is based on principles
of transparency, negotiability, and user agency to foster trust and
minimize misuse or manipulation.
25
References
§ Ali H., and Mancha R. (2018). Coming to Grips with dangerous Algorithms. MIT Sloan Management Review.
§ Boucher Ferguson, R. (2013). Are algorithms influencing your business? MIT Sloan Management Review.
§ Bambauer, J., & Zarsky, T. (2018). The algorithm game. Notre Dame L. Rev., 94, 1.
§ Burton, J. W., Stein, M. K., & Jensen, T. B. (2020). A systematic review of algorithm aversion in augmented decision making.
Journal of Behavioral Decision Making, 33(2), 220-239.
§ Faraj, S., Pachidi, S., & Sayegh, K. (2018). Working and organizing in the age of the learning algorithm. Information and
Organization, 28(1), pp. 62-70.
§ Gal, U., Jensen, T. B., & Stein, M. K. (2020). Breaking the vicious cycle of algorithmic management: A virtue ethics approach to
people analytics. Information and Organization, 30(2), 100301.