Paper Type

Complete

Abstract

Artificial intelligence systems are increasingly used in employee performance evaluation and related compensation decisions. In some settings, these systems remain opaque to employees, offering ratings without meaningful explanation or effective avenues for challenge. Prior research on algorithmic management and organizational justice has examined opacity and fairness but often treats opacity as a system attribute and fairness as a point-in-time judgment. We develop a conceptual process framework explaining how repeated exposure to opaque AI-mediated performance evaluation erodes procedural justice across recurring evaluation cycles. As employees repeatedly encounter ratings they cannot adequately understand or contest, they shift from uncertainty about individual decisions to broader judgments of procedural unfairness. The framework explains how this erosion shapes downstream outcomes through relational and affective pathways and may, under certain conditions, create pressure for organizational review of evaluation governance. This study contributes a process account of opaque AI evaluation in high-stakes work settings.

Paper Number

1673

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Aug 15th, 12:00 AM

Why Black Box AI Performance Reviews Undermine Procedural Justice Over Time

Artificial intelligence systems are increasingly used in employee performance evaluation and related compensation decisions. In some settings, these systems remain opaque to employees, offering ratings without meaningful explanation or effective avenues for challenge. Prior research on algorithmic management and organizational justice has examined opacity and fairness but often treats opacity as a system attribute and fairness as a point-in-time judgment. We develop a conceptual process framework explaining how repeated exposure to opaque AI-mediated performance evaluation erodes procedural justice across recurring evaluation cycles. As employees repeatedly encounter ratings they cannot adequately understand or contest, they shift from uncertainty about individual decisions to broader judgments of procedural unfairness. The framework explains how this erosion shapes downstream outcomes through relational and affective pathways and may, under certain conditions, create pressure for organizational review of evaluation governance. This study contributes a process account of opaque AI evaluation in high-stakes work settings.

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