rationalization

(redirected from rationalize)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.

Rationalization

The process of reorganizing and overhauling a company's operations, policies, and anything else needed to make the company more efficient. Rationalization is thought to be more widespread than a reorganization; it may involve closing some operations while expanding others. It usually involves a shift in investment or other policy. Rationalization is intended to improve a company's profitability.

rationalization

the restructuring of a firm or industry to enable it to become more efficient or to reduce OVERCAPACITY. In some cases this may involve the firm in closing high-cost plant and concentrating production in larger, more modern plants; or it may involve the streamlining of a firm's organizational structure and reducing overhead costs. In the context of an industry rationalization may require firms to merge, or inefficient firms to leave the industry leading to higher levels of MARKET CONCENTRATION. See PRODUCT RATIONALIZATION. DIVESTMENT.

rationalization

the reorganization of an industry (or firm) in order to enable it to use its resources more efficiently Rationalization usually involves the closure of high-cost plants (either through the merging of firms or their exit from the industry), which then allows output to be concentrated in plants of MINIMUM EFFICIENT SCALE and enables a better ‘balance’ to be achieved between industry supply and demand by eliminating EXCESS CAPACITY. Within a firm, rationalization may involve streamlining its organizational structure in order to reduce overhead costs. See also PRODUCTIVE EFFICIENCY, ORGANIZATIONAL SLACK.
References in periodicals archive ?
Appealing to higher authorities are attempts by the suspect to rationalize the behavior as done on behalf of others, rather than narcissistically motivated.
Many individuals rationalize their actions to excuse errors of all kinds and degrees.
The airlines calls these as part of moves "to rationalize and consolidate operations brought about by volatile oil prices and the growing demand for foreign tourism".
It was crucial for us to rationalize our custody operations because of our considerable fund growth and the Bank demonstrated that it has the systems, infrastructure and team to make this possible.
He said the government would not impose any new tax in the budget but considering various proposals to rationalize revenue targets and the tax net base would be increased.
There's no way to rationalize it, no way that anyone can explain or rationalize their behavior.
Motient Corporation (MNCP) announced today that it is continuing to actively pursue transactions that would allow it to rationalize the ownership of Mobile Satellite Ventures LP (MSV) and TerreStar Networks Inc.
In addition, while the growth of lower margin product lines, such as Levi Strauss Signature, is expected to pressure operating margins, the company's ability to leverage its manufacturing network and further rationalize product lines should result in good cash flow generation.
ProSight's ability to rationalize systems and projects while establishing stronger IT governance and investment oversight has produced substantial savings within government agencies to date.
Although the timing and amount of expected cost savings have not been fully established, Fitch recognizes the company's need to rationalize its expense base, in terms of both personnel and fixed assets, in light of slower growth prospects in the U.
and should not waste its money on Compaq and those that tried to rationalize an outdated set of computer offerings (servers and desktop).
Reynders, President and CEO of aaiPharma, "This transaction represents a small but important step in our initiative to rationalize and simplify our business.