Abstract
Algorithms are increasingly making decisions in organizations that carry moral consequences and such decisions are considered to be ordinarily made by leaders. An important consideration to be made by organizations is therefore whether adopting algorithms in this domain will be accepted by employees and whether this practice will harm their reputation. Considering this emergent phenomenon, we set out to examine employees’ perceptions about (a) algorithmic decision-making systems employed to occupy leadership roles and make moral decisions in organizations, and (b) the reputation of organizations that employ such systems. Furthermore, we examine the extent to which the decision agent needs to be recognized as “merely” a human, or whether more information is needed about the decision agent’s moral values (in this case, whether it is known that the human leader is humble or not) to be preferred over an algorithm. Our results reveal that participants in the algorithmic leader condition—relative to those in the human leader and humble human leader conditions—perceive the decision made to be less fair, trustworthy, and legitimate, and this in turn produces lower acceptance rates of the decision and more negative perceptions of the organization’s reputation. The human leader and humble human leader conditions do not significantly differ across all main and indirect effects. This latter effect strongly suggests that people prefer human (vs. algorithmic) leadership primarily because they are human and not necessarily because they possess certain moral values. Implications for theory, practice, and directions for future research are discussed.

Similar content being viewed by others
Explore related subjects
Discover the latest articles, news and stories from top researchers in related subjects.Notes
We rely on the leadership literature to conceptualize legitimacy, fairness, and trustworthiness perceptions as a function of leadership style and behavior [5, 24, 112]. This literature focuses on the subjective perceptions of employees regarding whether their leader makes decisions in a way that is legitimate, fair, and trustworthy. These perceptions are important because they have far-reaching consequences for an organization’s reputation and whether people accept decisions made by their leader. For example, if we consider fairness perceptions of an employee inside an organization, whether this employee perceives that he/she is treated fairly by their leader can predict the likelihood that he/she will quit their job [31], engage in unethical behavior [114], and even become a whistleblower and speak out against an organization’s malpractices [98]. Therefore, these perceptions are a useful lens from which to understand leader support/acceptance and organizational reputation.
An a priori power analysis suggests that approximately 176 total observations are required to achieve 90% power at an α of .05 (Cohen’s f = 0.3; [21, 22]. However, due to our instrumental attention check exclusion criteria, we narrowly missed our sample size objective. We used more stringent criteria for both type I and II errors, relative to conventional parameters (e.g., 80% power), as using Prolific to recruit participants allows us to obtain a larger sample size.
References
Acikgoz, Y., Davison, K.H., Compagnone, M., Laske, M.: Justice perceptions of artificial intelligence in selection. Int. J. Select. Assess. Adv. Online Public. 28(4), 399–416 (2020)
Allen, C.: Calculated morality: ethical computing in the limit. Cogn. Emot. Ethical Aspects Decis. Making Hum. Action 1, 19–23 (2002)
Allen, C., Smit, I., Wallach, W.: Artificial morality: top–down, bottom–up, and hybrid approaches. Ethics Inf. Technol. 7(3), 149–155 (2005)
Allen, C., Varner, G., Zinser, J.: Prolegomena to any future artificial moral agent. J. Exp. Theor. Artif. Intell. 12(3), 251–261 (2000)
Ambrose, M.L., Schminke, M.: The role of overall justice judgments in organizational justice research: a test of mediation. J. Appl. Psychol. 94(2), 491 (2009)
Anderson, M., & Anderson, S. L.: Guest editors' introduction: machine ethics. IEEE Intell. Syst. 21(4), 10–11 (2006)
Avolio, B.J., Walumbwa, F.O., Weber, T.J.: Leadership: Current theories, research, and future directions. Annu. Rev. Psychol. 60, 421–449 (2009)
Baer, M.D., Dhensa-Kahlon, R.K., Colquitt, J.A., Rodell, J.B., Outlaw, R., Long, D.M.: Uneasy lies the head that bears the trust: the effects of feeling trusted on emotional exhaustion. Acad. Manag. J. 58(6), 1637–1657 (2015)
Bastian, B., Loughnan, S., Haslam, N., Radke, H.R.: Don’t mind meat? The denial of mind to animals used for human consumption. Pers. Soc. Psychol. Bull. 38(2), 247–256 (2012)
Beugre, C. D., & Baron, R. A.: Perceptions of systemic justice: The effects of distributive, procedural, and interactional justice. J. Appl. Soc. Psychol. 31(2), 324-339 (2001)
Bharanitharan, K., Chen, Z.X., Bahmannia, S., Lowe, K.B.: Is leader humility a friend or foe, or both? An attachment theory lens on leader humility and its contradictory outcomes. J. Bus. Ethics 160(3), 729–743 (2019)
Bigman, Y.E., Gray, K.: People are averse to machines making moral decisions. Cognition 181, 21–34 (2018)
Burt, A., & Volchenboum, S.: How health care changes when algorithms start making diagnoses. Harvard Bus. Rev. (2018). https://hbr.org/2018/05/how-health-care-changes-when-algorithms-start-making-diagnoses
Burton, J.W., Stein, M.K., Jensen, T.B.: A systematic review of algorithm aversion in augmented decision making. J. Behav. Decis. Mak. 33(2), 220–239 (2020)
Cameron, K.S., Dutton, J.E., Quinn, R.E.: An introduction to positive organizational scholarship. Positive Org. Scholarship 3(13), 2–21 (2003)
Castelo, N., Bos, M.W., Lehmann, D.R.: Task-dependent algorithm aversion. J. Mark. Res. 56(5), 809–825 (2019)
Chamorro-Premuzic, T., Wade, M., & Jordan, J.: As AI makes more decisions, the nature of leadership will change. Harvard Bus. Rev (2018). https://hbr.org/2018/01/as-ai-makes-more-decisions-the-nature-of-leadership-will-change
Chemers, M. M.: Leadership effectiveness: an integrative review. Blackwell Handbook Soc. Psychol. 376–399 (2001)
Choi, Y., Mai-Dalton, R.R.: The model of followers’ responses to self-sacrificial leadership: an empirical test. Leadersh. Quart. 10, 397–421 (1999)
Chun, J. S. & De Cremer, D.: Algorithmic evaluation and its unfairness: the centrality of respect and the lack thereof. Unpublished manuscript (under review)
Cohen, J.: A power primer. Psychol. Bull. 112, 155–159 (1992)
Cohen, J.: Statistical power analysis. Curr. Dir. Psychol. Sci. 1, 98–101 (1992)
Cohen-Charash, Y., Spector, P.E.: The role of justice in organizations: a meta-analysis. Organ. Behav. Hum. Decis. Process. 86(2), 278–321 (2001)
Colquitt, J.A.: On the dimensionality of organizational justice: a construct validation of a measure. J. Appl. Psychol. 86(3), 386 (2001)
Connelly, S., Helton-Fauth, W., Mumford, M.D.: A managerial in-basket study of the impact of trait emotions on ethical choice. J. Bus. Ethics 51(3), 245–267 (2004)
Cramwinckel, F.M., De Cremer, D., van Dijke, M.: Dirty hands make dirty leaders?! The effects of touching dirty objects on rewarding unethical subordinates as a function of a leader’s self-interest. J. Bus. Ethics 115(1), 93–100 (2013)
De Cremer, D.: Leadership by Algorithm: Who Leads and Who Follows in the AI Era? Harriman House Limited (2020)
De Cremer, D., Van Dijke, M., Schminke, M., De Schutter, L., Stouten, J.: The trickle-down effects of perceived trustworthiness on subordinate performance. J. Appl. Psychol. 103(12), 1335 (2018)
De Cremer, D., McGuire, J.: Human-algorithm collaboration works best if humans lead (because it is fair!). Soc. Justice Res. 35(1), 33–55 (2022)
De Cremer, D., Moore, C.: Toward a better understanding of behavioral ethics in the workplace. Annu. Rev. Organ. Psych. Organ. Behav. 7, 369–393 (2020)
Daileyl, R.C., Kirk, D.J.: Distributive and procedural justice as antecedents of job dissatisfaction and intent to turnover. Hum. Relat. 45(3), 305–317 (1992)
Dawes, R.M., Faust, D., Meehl, P.E.: Clinical versus actuarial judgment. Science 243(4899), 1668–1674 (1989)
De Cremer, D.: Machines are not moral role models. Nat. Hum. Behav. 1–1 (2022)
De Cremer, D., & Kasparov, G.: The ethics of technology innovation: a double-edged sword? AI Ethics 1–5 (2021). https://doi.org/10.1007/s43681-021-00103-x
De Cremer, D., & Kasparov, G.: AI should augment human intelligence, not replace it. Harvard Business Review (2021). https://hbr.org/2021/03/ai-should-augment-human-intelligence-not-replace-it
de Cremer, D., & Kasparov, G.: The ethical AI—paradox: why better technology needs more and not less human responsibility. AI Ethics 2(1), 1–4 (2021)
De Cremer, D., McGuire, J., Hesselbarth, Y., & Mai, M.: Can Algorithms Help Us Decide Who to Trust? Harvard Business Review (2019). https://hbr.org/2019/06/can-algorithms-help-us-decide-who-to-trust
Detert, J.R., Edmondson, A.C.: Implicit voice theories: taken-for-granted rules of self-censorship at work. Acad. Manag. J. 54(3), 461–488 (2011)
Van Dierendonck, D.: Servant leadership: a review and synthesis. J. Manag. 37(4), 1228–1261 (2011)
Dietvorst, B.J., Bartels, D.M.: Consumers object to algorithms making morally relevant tradeoffs because of algorithms’ consequentialist decision strategies. J. Consum. Psychol. (2021). https://doi.org/10.1002/jcpy.1266
Duggan, J., Sherman, U., Carbery, R., McDonnell, A.: Algorithmic management and app-work in the gig economy: a research agenda for employment relations and HRM. Hum. Resour. Manag. J. 30(1), 114–132 (2020)
Earley, P. C.: Social loafing and collectivism: a comparison of the United States and the People's Republic of China. Adm. Sci. Quart. 34(4), 565–581 (1989)
Esaiasson, P., Persson, M., Gilljam, M., Lindholm, T.: Reconsidering the role of procedures for decision acceptance. Br. J. Political Sci. 49(1), 291–314 (2019)
Ford, R.C., Richardson, W.D.: Ethical decision making: A review of the empirical literature. J. Bus. Ethics 13(3), 205–221 (1994)
Frey, B.F.: The impact of moral intensity on decision making in a business context. J. Bus. Ethics 26(3), 181–195 (2000)
George, J.M.: Emotions and leadership: the role of emotional intelligence. Human relations 53(8), 1027–1055 (2000)
Gillespie, T.: The relevance of algorithms. Media Technol. 167(2014), 167 (2014)
Gillespie, N., Dietz, G.: Trust repair after an organization-level failure. Acad. Manag. Rev. 34(1), 127–145 (2009)
Glikson, E., Woolley, A.W.: Human trust in artificial intelligence: Review of empirical research. Acad. Manag. Ann. 14(2), 627–660 (2020)
Gold, A.: Principled principals? Values-driven leadership: evidence from ten case studies of ‘outstanding’school leaders. Educ. Manag. Adm. 31(2), 127–138 (2003)
Gray, H.M., Gray, K., Wegner, D.M.: Dimensions of mind perception. Science 315(5812), 619–619 (2007)
Gray, K., Schein, C., Cameron, C.D.: How to think about emotion and morality: Circles, not arrows. Curr. Opin. Psychol. 17, 41–46 (2017)
Gray, K., Waytz, A., Young, L.: The moral dyad: a fundamental template unifying moral judgment. Psychol. Inq. 23(2), 206–215 (2012)
Gray, K., Young, L., Waytz, A.: Mind perception is the essence of morality. Psychol. Inq. 23(2), 101–124 (2012)
Grove, W.M., Zald, D.H., Lebow, B.S., Snitz, B.E., Nelson, C.: Clinical versus mechanical prediction: a meta-analysis. Psychol. Assess. 12(1), 19 (2000)
Haesevoets, T., De Cremer, D., Dierckx, K., Van Hiel, A.: Human-machine collaboration in managerial decision making. Comput. Hum. Behav. 119, 106730 (2021)
Haidt, J.: The emotional dog and its rational tail: a social intuitionist approach to moral judgment. Psychol. Rev. 108(4), 814 (2001)
Haidt, J., Koller, S.H., Dias, M.G.: Affect, culture, and morality, or is it wrong to eat your dog? J. Pers. Soc. Psychol. 65(4), 613 (1993)
Den Hartog, D.N.: Ethical leadership. Annu. Rev. Organ. Psychol. Organ. Behav. 2(1), 409–434 (2015)
Hayes, A.F., Preacher, K.J.: Statistical mediation analysis with a multicategorical independent variable. Br. J. Math. Stat. Psychol. 67(3), 451–470 (2014)
Hayes, A. F.: PROCESS: a versatile computational tool for observed variable mediation, moderation, and conditional process modeling (2012). White Paper. http://www.afhayes.com
Hertz, S.G., Krettenauer, T.: Does moral identity effectively predict moral behavior?: A meta-analysis. Rev. Gen. Psychol. 20(2), 129–140 (2016)
Hilbig, B.E., Zettler, I.: Pillars of cooperation: Honesty-Humility, social value orientations, and economic behavior. J. Res. Pers. 43(3), 516–519 (2009)
Hoffman, M., Kahn, L.B., Li, D.: Discretion in hiring. Q. J. Econ. 133(2), 765–800 (2017)
Hollander, E.P.: Legitimacy, power, and influence: A perspective on relational features of leadership. In: Chemers, M.M., Ayman, R. (eds.) Leadership Theory and Research: Perspectives and Directions, pp. 29–47. Academic Press (1993)
Hollander-Blumoff, R., Tyler, T.R.: Procedural justice in negotiation: Procedural fairness, outcome acceptance, and integrative potential. Law Soc. Inq. 33(2), 473–500 (2008)
Höddinghaus, M., Sondern, D., Hertel, G.: The automation of leadership functions: Would people trust decision algorithms? Comput. Hum. Behav. 116, 106635 (2021)
International Monetary Fund. World Economic Outlook Update. (2021). https://www.imf.org/en/Publications/WEO/Issues/2021/01/26/2021-world-economic-outlook-update
Jago, A.S.: Algorithms and authenticity. Acad. Manag. Discov. 5(1), 38–56 (2019)
Jones, T.M.: Ethical decision making by individuals in organizations: An issue-contingent model. Acad. Manag. Rev. 16(2), 366–395 (1991)
Kappes, H. B., Balcetis, E., & De Cremer, D.: Motivated reasoning during recruitment. J. Appl. Psychol. 103(3), 270 (2018)
Kellogg, K.C., Valentine, M.A., Christin, A.: Algorithms at work: The new contested terrain of control. Acad. Manag. Ann. 14(1), 366–410 (2020)
Kesebir, P.: A quiet ego quiets death anxiety: Humility as an existential anxiety buffer. J. Pers. Soc. Psychol. 106(4), 610–623 (2014)
Key, S., & Popkin, S. J.: Integrating ethics into the strategic management process: doing well by doing good. Manag. Decis. 36(5), 331–338 (1998)
Knights, D., O’Leary, M.: Leadership, ethics and responsibility to the other. J. Bus. Ethics 67(2), 125–137 (2006)
Van Knippenberg, D., Van Knippenberg, B., De Cremer, D., Hogg, M.A.: Leadership, self, and identity: a review and research agenda. Leadersh. Q. 15(6), 825–856 (2004)
Langer, M., & Landers, R. N.: The future of artificial intelligence at work: a review on effects of decision automation and augmentation on workers targeted by algorithms and third-party observers. Comput. Hum. Behav. 123, 106878 (2021)
Lehr, D., Ohm, P.: Playing with the data: what legal scholars should learn about machine learning. UCDL Rev. 51, 653 (2017)
Lin, S.H.J., Johnson, R.E.: A suggestion to improve a day keeps your depletion away: examining promotive and prohibitive voice behaviors within a regulatory focus and ego depletion framework. J. Appl. Psychol. 100(5), 1381 (2015)
Maak, T., Pless, N.M.: Responsible leadership in a stakeholder society–a relational perspective. J. Bus. Ethics 66(1), 99–115 (2006)
MacCrory, F., Westerman, G., Alhammadi, Y., & Brynjolfsson, E.: Racing with and against the machine: changes in occupational skill composition in an era of rapid technological advance. Thirty Fifth International Conference on Information Systems, Auckland 2014 (2014)
Mael, F., Ashforth, B.E.: Alumni and their alma mater: a partial test of the reformulated model of organizational identification. J. Organ. Behav. 13(2), 103–123 (1992)
Mayer, R.C., Davis, J.H.: The effect of the performance appraisal system on trust for management: a field quasi-experiment. J. Appl. Psychol. 84(1), 123 (1999)
Moore, C.: Moral disengagement. Curr. Opin. Psychol. 6, 199–204 (2015)
Nagtegaal, R.: The impact of using algorithms for managerial decisions on public employees’ procedural justice. Gov. Inf. Q. 38(1), 101536 (2021)
Newman, D.T., Fast, N.J., Harmon, D.J.: When eliminating bias isn’t fair: algorithmic reductionism and procedural justice in human resource decisions. Organ. Behav. Hum. Decis. Process. 160, 149–167 (2020)
Oppenheimer, D.M., Meyvis, T., Davidenko, N.: Instructional manipulation checks: detecting satisficing to increase statistical power. J. Exp. Soc. Psychol. 45(4), 867–872 (2009)
Ötting, S.K., Maier, G.W.: The importance of procedural justice in human-machine-interactions: intelligent systems as new decision agents in organizations. Comput. Hum. Behav. 89, 27–39 (2018)
Owens, B.P., Hekman, D.R.: How does leader humility influence team performance? Exploring the mechanisms of contagion and collective promotion focus. Acad. Manag. J. 59(3), 1088–1111 (2016)
Owens, B.P., Johnson, M.D., Mitchell, T.R.: Expressed humility in organizations: implications for performance, teams, and leadership. Organ. Sci. 24(5), 1517–1538 (2013)
Palan, S., Schitter, C.: Prolific. ac—a subject pool for online experiments. J. Behav. Exp. Financ. 17, 22–27 (2018)
Palmer, B., Walls, M., Burgess, Z., Stough, C.: Emotional intelligence and effective leadership. Leadersh. Org. Dev. J. 22(1), 5–10 (2001)
Peer, E., Brandimarte, L., Samat, S., Acquisti, A.: Beyond the Turk: Alternative platforms for crowdsourcing behavioral research. J. Exp. Soc. Psychol. 70, 153–163 (2017)
Raveendhran, R., Fast, N.J.: Humans judge, algorithms nudge: the psychology of behavior tracking acceptance. Organ. Behav. Hum. Decis. Process. 164, 11–26 (2021)
Robinson, S.L., Wang, W., Kiewitz, C.: Coworkers behaving badly: the impact of coworker deviant behavior upon individual employees. Annu. Rev. Organ. Psych. Organ. Behav. 1(1), 123–143 (2014)
Schein, E.H., Schein, P.A.: Humble Leadership: The Power of Relationships, Openness, and Trust. Berrett-Koehler Publishers (2018)
Schwartz, M.S.: Ethical decision-making theory: An integrated approach. J. Bus. Ethics 139(4), 755–776 (2016)
Seifert, D.L., Sweeney, J.T., Joireman, J., Thornton, J.M.: The influence of organizational justice on accountant whistleblowing. Acc. Organ. Soc. 35(7), 707–717 (2010)
Shamir, B., House, R.J., Arthur, M.B.: The motivational effects of charismatic leadership: a self-concept based theory. Organ. Sci. 4(4), 577–594 (1993)
Singhapakdi, A., Vitell, S.J., Kraft, K.L.: Moral intensity and ethical decision-making of marketing professionals. J. Bus. Res. 36(3), 245–255 (1996)
Skitka, L.J.: The psychology of moral conviction. Soc. Pers. Psychol. Compass 4(4), 267–281 (2010)
Smidts, A., Pruyn, A.T.H., Van Riel, C.B.: The impact of employee communication and perceived external prestige on organizational identification. Acad. Manag. J. 44(5), 1051–1062 (2001)
Sunstein, C.R.: Moral heuristics. Behav. Brain Sci. 28(4), 531–541 (2005)
Terwel, B.W., Harinck, F., Ellemers, N., Daamen, D.D.: Voice in political decision-making: the effect of group voice on perceived trustworthiness of decision makers and subsequent acceptance of decisions. J. Exp. Psychol. Appl. 16(2), 173 (2010)
Trevino, L. K.: Experimental approaches to studying ethical-unethical behavior in organizations. Bus. Ethics Quart. 2(2), 121–136 (1992)
Treviño, L.K.: Ethical decision making in organizations: a person-situation interactionist model. Acad. Manag. Rev. 11(3), 601–617 (1986)
Treviño, L.K., Hartman, L.P., Brown, M.: Moral person and moral manager: how executives develop a reputation for ethical leadership. Calif. Manag. Rev. 42(4), 128–142 (2000)
Treviño, L.K., Den Nieuwenboer, N.A., Kish-Gephart, J.J.: (Un) ethical behavior in organizations. Annu. Rev. Psychol. 65, 635–660 (2014)
Treviño, L.K., Weaver, G.R., Reynolds, S.J.: Behavioral ethics in organizations: a review. J. Manag. 32(6), 951–990 (2006)
Tversky, A., Kahneman, D.: Judgment under uncertainty: Heuristics and biases. Science 185(4157), 1124–1131 (1974)
Tyler, T.R.: Psychological perspectives on legitimacy and legitimation. Annu. Rev. Psychol. 57, 375–400 (2006)
Tyler, T.R., De Cremer, D.: Process-based leadership: fair procedures and reactions to organizational change. Leadersh. Q. 16(4), 529–545 (2005)
Tyler, T. R., & Rasinski, K.: Procedural justice, institutional legitimacy, and the acceptance of unpopular US Supreme Court decisions: a reply to Gibson. Law Soc. Rev. 25(3), 621–630 (1991)
Victor, B., Trevino, L.K., Shapiro, D.L.: Peer reporting of unethical behavior: the influence of justice evaluations and social context factors. J. Bus. Ethics 12(4), 253–263 (1993)
Van Vugt, M., Hogan, R., Kaiser, R.B.: Leadership, followership, and evolution: some lessons from the past. Am. Psychol. 63(3), 182 (2008)
von Krogh, G.: Artificial Intelligence in Organizations: New Opportunities for Phenomenon-Based Theorizing. Academy of Management Discoveries, 4(4), 404–409 (2018)
Wallach, W., Allen, C., Smit, I.: Machine morality: bottom-up and top-down approaches for modelling human moral faculties. AI Soc. 22(4), 565–582 (2008)
Wallach, W., Franklin, S., Allen, C.: A conceptual and computational model of moral decision making in human and artificial agents. Top. Cogn. Sci. 2(3), 454–485 (2010)
Wilson, H.J., Daugherty, P.R.: Collaborative intelligence: humans and AI are joining forces. Harv. Bus. Rev. 96, 114–123 (2018)
Zedeck, S.: A process analysis of the assessment center method. Res. Org Behav. 8, 259–296 (1986)
Author information
Authors and Affiliations
Corresponding author
Ethics declarations
Conflict of interest
The authors have no potential competing interests to declare in relation to this research.
Additional information
Publisher’s Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Appendices
Appendix A

The image above illustrates the hierarchical representation of the simulated organization that participants were recruited to work for. All participants were allocated the position of “Employee 2” on what appeared to be a random basis.
Appendix B

The image above illustrates the series of loading bars that appeared on the screen for participants. The loading bar was a gif-image where the dark blue square looped from left to right. After several seconds, the subsequent screen appeared so that participants saw that the counter (e.g., 1/2) went up. This animated progress bar was used to make participants believe that the system is busy connecting them, and that they had to wait until the system was ready.
Appendix C

This is an illustration that was provided to participants of the algorithmic code that resulted in the decision to choose Bauer Industries as a sponsor in the business moral dilemma. The purpose of the illustration was to bolster the realism of our manipulation and give participants the impression they were interacting with an algorithmic authority.
Rights and permissions
About this article
Cite this article
McGuire, J., De Cremer, D. Algorithms, leadership, and morality: why a mere human effect drives the preference for human over algorithmic leadership. AI Ethics 3, 601–618 (2023). https://doi.org/10.1007/s43681-022-00192-2
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s43681-022-00192-2