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All Journal JOURNAL SCIENTIFIC OF MANDALIKA (JSM) Asia Pacific Journal of Management and Education Asian Journal of Management Analytics Jurnal Ar Ro'is Mandalika (Armada)
Warsono, Heribertus Yudho
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Journal : Asian Journal of Management Analytics

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Managerial Consequences of the Algorithmic Determination of Incentive Decisions on Procedural Justice Perceptions in Production Line Warsono, Heribertus Yudho; Widada, Dharma; Sumarliani, Sri
Asian Journal of Management Analytics Vol. 4 No. 3 (2025): July 2025
Publisher : PT FORMOSA CENDEKIA GLOBAL

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.55927/ajma.v4i3.14997

Abstract

This study investigates the managerial consequences of algorithm-based decision-making in incentive allocation on production line workers’ perceptions of procedural fairness. Grounded in organizational justice theory and the socio-technical systems framework, the research explores how algorithm transparency, process clarity, and perceived impartiality influence fairness judgments. Using a mixed-method approach, data were collected from 186 factory workers through surveys, complemented by in-depth interviews, and analyzed using structural equation modeling. The findings reveal that low algorithm transparency correlates negatively with perceptions of procedural fairness, while the absence of human involvement in decision-making reduces trust in managerial systems. These results emphasize the need for human-centered algorithm design and fair management practices to uphold employee trust and fairness in Industry 4.0 environments.
Co-Authors Akhmad Riduwan Budiyanto Budiyanto Kusuma, Emeralda Ayu Sulistiyanto Sulistiyanto, Sulistiyanto Sumarliani, Sri Widada, Dharma