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HR systems that capture information and make decisions about employees' performance will only improve motivation and productivity if people understand why they are being monitored, new research shows.

A research team led by Martin R. Edwards from the UQ Business School set out to examine two broad automated algorithmic functions in HR systems: automated monitoring and 'metricisation' of performance data; and automated decision-making based on those metrics.

In an article published in Human Resource Management, the researchers say algorithmic systems themselves are not inherently positive or negative, but that their outcomes depend entirely on employees' perceptions of why they are being used...