Economic, Business, Management en-US Sat, 20 Nov 2021 00:00:00 +0000 OJS 60 THE ISSUES OF THE INSTITUTIONAL CHANGES AND MANAGEMENT <p>Nothing is constant in the life and everything changes, therefore, the managers are asked to have adaptation skills in order to respond the changes in a proper and timely manner.</p> <p>The organizations and their members resist changes and it can be considered as a positive phenomenon, as resistance is the indicator of the stability and at the same time, it gives the possibility to predict the behavior. Resistance to the changes can become the source for the functional conflict, what is considered useful for the organization as it stimulates healthy discussion of available ideas resulted in the better decisions. Though the resistance to the changes has a disadvantage as well, it prevents to adaptation and progress.&nbsp;&nbsp;</p> <p>The article refers to the change drivers trying to overcome the resistance. In addition, there are the recommendations on the issues which should be focuses in order to make activity effective.</p> Neli Beridze, Giorgi Butskhrikidze Copyright (c) 2023 Economic, Business, Management Sat, 20 Nov 2021 00:00:00 +0000 FOR FORMATION OF THE EFFICIENT TEAM <p>In order to make a business operational it is required not only to have the desire to do job and have sufficient funds, but it is also important and necessary to have an efficient team. It is impossible to achieve a great success without it.</p> <p>The general categories for the efficiency of the team like resources, composition, labor design, variables of the process reflecting ongoing activitiesof the team influencing the efficiency are described in the article. The managers often apply the evaluation model including the listed characteristics in the practice. According to the author, there is no unique model for evaluation, as the teams differ from each other very much by a form and a structure. They require an individual approach. Therefore, the model can be considered as a guideline for the evaluation.</p> Giorgi Butskhrikidze, Nelly Beridze Copyright (c) 2023 Economic, Business, Management Sat, 20 Nov 2021 00:00:00 +0000 PROBLEMS OF EMPLOYERS AND OPPORTUNITIES TO MEET THEIR INTERESTS IN SAMTSKHE-JAVAKHETI <p>In the face of global challenges, fierce competition, the information technology revolution, and ever-increasing organizational change, government agencies and businesses are increasingly taking on the responsibility of training and retaining employees, especially in the long run. In most cases, they apply to "outsourcing".</p> <p>The aim of the research is to study the demands and problems of employers in Samtskhe-Javakheti, which are faced in the process of personnel selection, against the background of global challenges, organizational changes and changes in the requirements for employees. Analyze the skills most in demand and needed for employers and compare the skills and competencies needed for employment by graduates, developed in the process of studying in higher education.</p> <p>The study was based on the results of an online survey analysis of 22 employers in Samtskhe-Javakheti region (public-10 and private-12) and 62 graduates of various faculties of SJSU. Quantitative research, comparative method, interview, open and closed questionnaire, analysis and synthesis methods were used in the research.</p> <p>Conclusions are made based on the results of the research, namely:* Most employers need qualified, trained staff who, in addition to technical and cognitive skills, will have the skills of responsibility, time management, teamwork and respect for others, collaboration, analytics, decision making, negotiation, IT, communication, good writing and speaking skills. . * Due to the lack of skills needed by employers, graduates find it difficult to become competitive in the employment market and achieve career success. Based on the results of the research, specific recommendations have been developed which, in our opinion, will help to increase the employment prospects of university graduates and their career success.</p> <p>&nbsp;* Due to the lack of skills needed by employers, graduates find it difficult to become competitive in the employment market and achieve career success.</p> Tina Gelashvili Copyright (c) 2023 Economic, Business, Management Sat, 20 Nov 2021 00:00:00 +0000 THE ECONOMIC CRISIS CAUSED BY THE PANDEMIC AND SOME SOLUTIONS <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The paper refers to one of the new painful problems - COVID 19, the problems and crisis situations caused by it, influencing primarily economy and daily life of people. The fall in some sectors of economy is discussed and the required supportive measures and recommendations are given to find solutions and overcome global and including Georgian, difficult condition and avoid economic collapse.</p> Ia Gelashvili Copyright (c) 2023 Economic, Business, Management Sat, 20 Nov 2021 00:00:00 +0000 EQUILIBRIUM EQUATION SYSTEM IN THE NATIONAL ECONOMY <p>In the article, we present the system of linear equations of equilibrium of the national economy, which is related to the analysis of national income. Together with the simplest model of the national economy, we will consider a relatively complicated model in which state expenditures (G) and tax fees (T) are considered. As can be seen from the figure, in the cell "Firms" comes three money flows C, I and G, and there is a money flow Y in the form of national income, which in this case is divided into three flows S, T and C. Thus, the amount that households have left to purchase goods and saving is not Y, but Y-T, which is called net income.</p> Jemal Mamaiashvili Copyright (c) 2023 Economic, Business, Management Sat, 20 Nov 2021 00:00:00 +0000 ECONOMIC DEVELOPMENT OF IT OUTSOURCING MARKET IN BUSINESS INSTITUTIONS/ ORGANIZATIONS OF SMATSKHE-JAVAKHETI REGION OF GEORGIA <p>The use of IT outsourcing in business&nbsp; organizations of Samtskhe-Javakheti Municipality started with the support of IT infrastructure and then spread to its tasks and business processes. Today, IT outsourcing is an established type of customer service that is evolving alongside the information and communication technology market.</p> <p>With the shift to the information economy, the spread of IT outsourcing, which includes the introduction of information processing systems, information technology and enterprise management, has become explosive. The use of innovative information technologies in the modern market environment allows enterprises to obtain material benefits and increase their competitiveness.</p> <p>At the same time, their use leads to an increase in the complexity and scale of IT projects, changes in the IT infrastructure of enterprises, increased saturation of the enterprise with information and communication technology equipment and software, an increase in the share of IT costs in the total costs of the enterprise.</p> <p>In the region, the main groups of IT outsourcing services are:</p> <ul> <li>Technical support and management of IT - infrastructure: support for computer equipment, basic corporate services, communications systems, information and technical security systems, business applications.</li> <li>Creation and development of information systems: development of applications and their integration with other systems, development of existing information systems.</li> <li>Training and development of staff in the organization - client in the field of IT: creation and implementation of training programs, evaluation of the effectiveness of training.</li> <li>Provision of IT personnel of various skill levels to perform assigned tasks: developers, programmers, system administrators, database administrators, project managers, analysts, etc.</li> </ul> <p>Constant changes in business and the complexity of IT infrastructure make it difficult for many companies to control and maintain growing IT systems.</p> <p>A company specializing in IT outsourcing services can ensure the high reliability and efficiency of systems operation due to high technology resources, experience and production scale of its organization. Detailed control over your own IT systems and what the outsourcer does is achieved through clear regulation of interactions.</p> <p>Through IT outsourcing the company can:</p> <p>Quickly establish the proper functioning of IT systems</p> <p>Achieving the required quality of service</p> <p>Involve highly qualified specialists in problem solving immediately</p> <p>Significantly reduce the risk of losing critical data</p> <p>Optimize and predict costs;</p> <p>Concentrate company resources on core business</p> <p>Among the goals of IT outsourcing are the following:</p> <p>Reduced total cost of ownership (TCO) and “hidden costs” are associated with standardization, larger scale and better management. Among other things, capital is freed up for reinvestment in the main business;</p> <p>Standardized infrastructure and increased transparency of fixed assets combined with effective budget management. service-level agreement (SLA) transparency is enhanced and combined with effective workload management;</p> <p>A decrease in the number of service providers entails a decrease in the complexity of the infrastructure, which leads to a simplification of the support process and to a decrease in operational risks;</p> <p>Increasing quality: integrated solutions reduce the number of uncoordinated suppliers, increasing the quality of services provided and the level of user satisfaction;</p> <p>Increased scalability: Providing flexibility and scalability requires an increased level of support for the core business.</p> <p>Outsourcing the solution of IT tasks relieves the company from the need to calculate the costs of developing and implementing software solutions and maintaining a rather complicated accounting of intangible assets. Today, many experts admit that accounting for software purchased by a company, calculating the corresponding tax amounts, depreciation deductions, etc. is a non-trivial task, since modern legislation does not sufficiently cover intellectual property objects, and there is no methodology for accounting for such complex objects as, for example, an Internet portal.( Ilyin V.V. 2006).</p> <p>By outsourcing software development and personalization and supporting Internet portals, companies are simultaneously avoiding the hassle of accounting in this area. As a result, only the amount corresponding to the payment for the services of the outsourced partner will appear in the company documents. All software and tax accounting issues are handled independently by the partner.</p> <p>The transfer of the information system as a whole to an external company allows the company to get rid of the costs of software and hardware, for appropriate updates, repairs and maintenance. Recently, we are beginning to talk not only about outsourcing work on setting up and configuring, maintaining and maintaining information infrastructure, but also about transferring to third parties the entire range of measures to create and support a corporate information system.</p> <p>In the latter case, companies do not even try to acquire hardware in their ownership, as everything will be submitted / subject to a partner outsourcer. Such complex outsourcing shifts the care of the partner to the maintenance of the infrastructure. Also, periodically update hardware and software, organizational equipment and household consumables.</p> <p>Employees of an outsourcing partner who work in a company in accordance with a contract report to their immediate superiors, and not to the management of the company that ordered the outsourcing services. This can create difficulties when it is necessary to carry out any operational actions, for example, to restore the operation of the information system after a failure.</p> <p>In this case, the customer company has information about the optimal sequence for restoring the functions of the information system, and employees of the outsourcing company act only on the instructions of their own management.</p> <p>The admission of third parties to the company's business processes creates significant information security risks. These risks are associated with both the possibility of loss of information and the possibility of its disclosure through the fault of the outsourcing service provider's employees. This is a very important factor, since even the signing of a special agreement on the liability of an outsourcing partner for violation of the integrity or confidentiality of company information is not a guarantee that this will not happen.</p> <p>As a rule, subsequent legal proceedings, and even their successful completion, cannot compensate for the company's losses. Therefore, today domestic firms are extremely wary of the possibility of processing their internal information by third parties.</p> <p>If we summarize the effectiveness of IT outsourcing, we can highlight both the Positive and Negative of IT support both independently and through IT support outsourcing.</p> Leri Nozadze Copyright (c) 2023 Economic, Business, Management Sat, 20 Nov 2021 00:00:00 +0000 GEORGIA IN ECONOMIC FREEDOM INDICES: THE CONCEPT AND DYNAMICS OF THE RATINGS <p>The paper discusses the global index of economic freedom and the concept of the economic freedom index, their components and meaning. The dynamics of the said indices and the place of Georgian among the world countries are presented. The reasons for falling downof Georgia in the economic freedom index for 2022 are discussed. There are the considerations about the possible advancement of Georgia in the ratings of the Georgia’s economic freedom after recovery from the negative outcomes of the Pandemics. In addition, the government has to care about the regulations and reduction of the governmental costs, protection of the property and efficiency of the court, labor and business freedom, fiscal healthiness and stability of the GEL rate.&nbsp;&nbsp;</p> Kakhaber Tsimintia Copyright (c) 2023 Economic, Business, Management Sat, 20 Nov 2021 00:00:00 +0000 THE SUPPORT MECHANISM FOR THE REGIONS AND FARMS BEING IN THE INFABORABLE NATURAL AND ECONOMIC CONDITIONS <p>The paper describes the unfavorable natural and economic conditions in Samtskhe-Javakheti region. The region belongs to unfavorable region for agricultural production, as well as to the highland area with low productive lands; The natural and geographical peculiarities of Samtskhe-Javakheti region, including Akhaltsikhe, Akhalkalaki, Adigeni, Ninotsminda, Borjomi and Aspindza municipalities and their impact on the economic indicators of the region. The following measures are listedas support mechanisms, like financial support from the state; modernization of the agricultural produce and subsidy for increasing efficiency of the investments; support of the special programs for development of the food production.</p> Amalia Shakulashvili Copyright (c) 2023 Economic, Business, Management Sat, 20 Nov 2021 00:00:00 +0000 SOME ASPECTS OF THE ORIGIN OF THE CORPORATE MANAGEMENT AND CORPORATE JUSTICE <p>Some issues of origin of corporate law are discussed in the work; It is noted that the existence of developed corporative justice on the basis of corporation norms -&nbsp; is one of the main signs of civil society.&nbsp; The conclusion concerning&nbsp; on the fact, that the corporation law, which began developing by trading guilds and merchants caravans, is the first form the trade corporations. The origins and development of corporations in England, the United States and France are also discussed in the work.</p> <p>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Development of corporate law has reached quite high level in the countries of market economy- A large number of legislative and sub-legislative acts have been developed. A sufficiently extensive court practice has accumulated. But at some point it has become&nbsp; clear that a certain part of the problems could not be achieved with the help of mandatory norms, because their solution generally goes beyond the legislative field. That is why it was necessary to introduce codex of corporate management</p> Elguja Chanturia Copyright (c) 2023 Economic, Business, Management Sat, 20 Nov 2021 00:00:00 +0000