THE EFFECT OF GLOBALIZATION ON EMPLOYMENT: IMBALANCES AND THEIR MANAGEMENT MECHANISMS

Ana Kvatchadze

E-mail: anakvachadze1993@gmail.com

PhD Student, Batumi Shota Rustaveli State University

Batumi, Georgia

https://orcid.org/0009-0006-4475-6709

Abstract. The process of globalization has significantly transformed the labor market and modern practices of Human Resource Management (HRM). These changes are multifaceted, encompassing both positive developments and serious systemic challenges. On the one hand, globalization has stimulated the growth of innovative sectors, enhanced international cooperation, facilitated knowledge exchange, and increased labor mobility. As a result, the competitive environment has intensified, compelling organizations to adopt more flexible, technologically advanced, and human-centered HR strategies.

On the other hand, globalization has exposed a range of difficulties within existing systems, particularly in small, developing, and transition economies such as Georgia. The labor market increasingly faces skill mismatches, where the qualifications, competencies, and practical experience of the workforce do not align with the real demands of available positions. In addition, labor migration has emerged as a significant concern, leading to a shortage of qualified professionals in the local market. The aim of this article is to provide a comprehensive analysis of the impact of globalization on HRM policies and practices, focusing on critical aspects such as the transformation of recruitment processes, the introduction of new training and development models, alignment of compensation systems with international standards, enhancement of internal communication, cultural adaptation, and the evolution of modern leadership styles. The study is based on interviews with HR managers working in Georgian organizations, which allows for an in-depth exploration of local labor market challenges and trends from a first-hand professional perspective. The findings indicate that globalization not only increases opportunities for building a diverse workforce but also imposes substantial strategic responsibilities on organizations. In the modern HR environment, issues such as managing cultural diversity, shortages of digital competencies, labor mobility regulations, the need for technological integration, and growing pressure on employees’ working conditions are becoming more pronounced. Consequently, organizations must reconsider the strategic function of HRM in order to create sustainable, competitive, and innovative work environments. The results further emphasize that addressing the challenges associated with globalization requires coordinated efforts between the education system, the private sector, and the state. Such cooperation is essential for reducing skill mismatches, integrating vocational education, and optimizing the structural dynamics of the labor market. Therefore, effective management of these challenges in Georgia depends on the development of progressive HRM policies and the targeted strengthening of human capital.

Keywords: Globalization, Human Resource Management, Management, Global Strategy, Organizational Change.

JEL classification: E24