Asian Journal of Management Analytics
Vol. 4 No. 3 (2025): July 2025

Managerial Consequences of the Algorithmic Determination of Incentive Decisions on Procedural Justice Perceptions in Production Line

Warsono, Heribertus Yudho (Unknown)
Widada, Dharma (Unknown)
Sumarliani, Sri (Unknown)



Article Info

Publish Date
30 Jul 2025

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.

Copyrights © 2025






Journal Info

Abbrev

ajma

Publisher

Subject

Decision Sciences, Operations Research & Management

Description

The Asian Journal of Management Analytics (AJMA) is a journal focused on the theory and application of data analytics and its applications in contemporary business, economics, and management disciplines. These disciplines include accounting, finance, management, marketing, economics ...