rationalization

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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 ?
The Rationalisation Hour initiative would help to draw attention to the importance of reducing load, especially during peak hours, to preserve energy and reduce emissions.
He said when he assumed office as Mayor, he met a situation where three persons were performing the same job, a situation which compelled the Assembly to embark on the staff rationalisation exercise.
He added that the peak hour launched under the directive of Sharjah Ruler will be the first step towards achieving the dream of making Sharjah a city of rationalisation in the world.
Earlier, PPLA Divisional Vice President Rao Ijaz, while addressing the audience, said the rationalisation policy must be devised rationally.
The proposed tariff rationalisation will improve the competitiveness of the leading export sectors including textiles, apparel, leather, spices, chemical products, plastics and articles thereof, iron and steel.
Entro is already a leading player within energy rationalisation of commercial buildings in Norway, while Rejlers has long experience of providing consulting services within this specialist area in Norway, Sweden and Finland.
The three-week campaign, titled "You Limit" will inform the public about the best models and practices available in the world with regard to rationalisation of water consumption, the Saudi Press Agency reported quoting the ministry sources.
"There were some suggestions and representation with regard to rationalisation of certain tax provisions.
Explaining the objective of the exercise of rationalisation, Shri Goyal said that it is to undertake a comprehensive review of existing sources of coal and consider the feasibility for rationalization of these sources with a view to optimize transportation cost and materialization under the given technical constraints.
The park in Al Thumama was announced as part of a national campaign for rationalisation of water and electricity consumption.
Par Ingi Amr Depuis l'ete dernier, le ministere de l'Electricite appelle les citoyens, de temps a autre a la rationalisation de leur consommation en energie.
As companies embark on their Windows 7 migration and virtualisation projects today, or go straight for Windows 8 migration in the near future; the fundamental step to the success will be 'Application Rationalisation' - an IT spring cleaning exercise to ascertain what software must be retained and what is not required.