Performance Optimization Versus Employee Psychological Erosion

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Authors: Ms. Sanika Sachin Jadhav

Abstract: The growing use of algorithmic management systems in pharmaceutical organisations has changed how employees are supervised, evaluated, and directed. Instead of relying on human managers, these systems use automated data collection and continuous monitoring to govern how employees work. This study looks at both sides of this shift, the operational benefits it produces and the psychological harm it causes. A cross sectional survey was conducted with 250 pharmaceutical professionals, comprising 125 Sales Representatives and 125 Quality Control Analysts. The study measured technostress, psychological contract breach, and perceived algorithmic opacity. Results showed that AI supervision increased output by 18.4% but also led to a 22% rise in technostress scores and a 128% jump in turnover intention among algorithmically managed workers. A strong negative correlation of r = 0.74 (p < 0.01) between algorithmic opacity and organisational trust confirms that lack of transparency is a key mechanism through which algorithmic management damages the employee organisation relationship. Based on these findings, this paper proposes a Human Centric Algorithmic Framework that incorporates Human in the Loop design as a practical governance solution.

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