Algorithmic Governance, Organizational Culture, and the Mediating Role of Transformational Leadership
Algorithmic Governance, Organizational Culture, and the Mediating Role of Transformational Leadership

Summary/Abstract: The rapid advancement of technology paved the way for humans to have actual conversations with Artificial Intelligence (AI) tools. Today, we can simply ask these toolsabout things we had to scan multiple websites before just to get the information we need. We may hardly notice it, but social media platforms rely on algorithms to moderate content such as automatic blocking for violations. Additionally, governments are now using it for predictive policing, enabling police to stop a potential crime before it happens. With promises of efficiency and objectivity, organizations are now increasingly relying on algorithms for critical aspects like decision-making, hiring, employee monitoring and operational automation, making it a source of competitive advantage. However, just like any other technologically driven innovation, it has drawbacks. Concerns about its ethical use are now arising, especially since they have the capacity to replace and surpass human capabilities. Thus, this paper aims to explore how algorithmic governance influences organizational culture while highlighting the role of transformational leadership to ensure sustainable and positive organizational outcomes. To accomplish this, the researcher conducted a systematic literature review of 19 Scopus-indexed articles from 2020 to 2025.The results highlight the significant role of transformational leadership in ensuring that integrating algorithmic governance is not merely used for monitoring and compliance but to amplify human judgment and creativity. Without it, organizations are at risk for decreased employee morale, stifled creativity, and diminished trust in organization.

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