The Paradox of Algorithmic Management in Hungary: Increasing Transparency While Reshaping Worker Agency

Algorithmic management (AM) has become a key research focus in the sociology of work, especially concerning platform work, but is increasingly spreading to traditional workplaces. A recent study by Csaba Makó, Miklós Illéssy, József Pap, Éva Farkas and László Komlósi, published in the Journal of Labor and Society under the title Algorithmic Management in Traditional Workplaces: The Case of High vs. Low Involvement Working Practices – The Context of the Non-Inclusive Industrial Relations System in Hungary, examined how AM influences labour processes in Hungary, where union membership dropped from 19.7% in 2001 to 7.4% in 2020, while collective bargaining coverage fell from 47% in 2000 to 22% by 2020. The research compared two cases: a medium-sized company providing knowledge-intensive business services and a Hungarian subsidiary of a multinational employing warehouse workers.

The study found that AM's impact is more complex than the literature suggests. While much previous research indicates that AM reduces employee autonomy, the authors discovered it both decreases and increases employees' roles and decision-making freedom in different areas. In the EU, 11% of employees in conventional workplaces are affected by some kind of algorithmic management, compared to just 2% of workers active on digital labour platforms. The investigation showed that AM implementation improved transparency and wage predictability in both companies examined, while workers in traditional workplaces using algorithmic management were able to maintain or even increase certain levels of autonomy.

The case studies highlight the importance of new actors, such as clients and external consultants, in AM analysis. The authors emphasize that alongside traditional industrial relations actors (employees, employers, state), these new stakeholders significantly influence AM operations. The study concludes that successful AM implementation depends on national context, and Hungary's non-inclusive industrial relations system creates specific challenges, making transparency and employee involvement particularly important in the design and implementation of algorithmic systems.

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Algorithmic Management in Traditional Workplaces: The Case of High vs. Low Involvement Working Practices

Abstract Algorithmic management (am) has become a key research focus in the sociology of work, especially concerning platform work. However, am tools are also impacting traditional workplaces. This study investigates three main questions: the impact of ai on high vs. low-skilled jobs, its effect on employee’s role, and the formation of collective voices around am, including non-traditional labour relations actors. The context is the Hungarian industrial relations system, known for low union membership and company-level bargaining. The study compares two cases: a medium-sized company in high-value-added business services and a Hungarian subsidiary of a multinational employing warehouse workers. Contrary to literature suggesting am reduces employee autonomy, the study finds its impact complex, decreasing employee’s roles some areas while increasing it in others. Notably, transparency and wage predictability improved. The study also highlights the importance of considering new actors, such as clients and external consultants, in am analysis.

BrillCsaba Makó

Makó, C., Illéssy, M., Pap, J., Farkas, É., & Komlósi, L. (2025). Algorithmic Management in Traditional Workplaces: The Case of High vs. Low Involvement Working Practices: The Context of the Non-Inclusive Industrial Relations System in Hungary. | TK Szociológiai Intézet

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