Algorithmic management (AM) is increasingly used, extending its application from labor platforms to more traditional employment settings. While AM offers several benefits for organizations, such as higher efficiency of processes, applicants and employees oftentimes perceive its use as unjust. We assume that the relationship between AM use and justice perceptions is moderated by prior discrimination experience by (former) supervisors. Further, we propose that discrimination is negatively associated with justice evaluations and expectations. To test these hypotheses, we conducted two online experiments (n1 = 82; n2 = 216). Results of Study 1 demonstrate that AM use was negatively associated with justice evaluations and that the negative effect of AM use on justice was weakened if participants had previously experienced discrimination by a (former) supervisor. Study 2 results demonstrate that discrimination experience was negatively associated with justice expectations and that this relationship was mediated by justice evaluations. This relationship was moderated by type of management, such that individuals perceived discrimination less negative when it came from AM compared to a human manager. We propose the use of AM might help to lower fear of making discrimination experiences again and propose that individuals perceive discrimination by human managers and AM systems inherently differently.
