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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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

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.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
The ECNEC approved replacement of old and obsolete signal gear from Lodhran-Multan-Khanewal-Shahdara Bagh main line section of Pakistan Railways (revised) at a total rationalized cost of Rs 18,346.60 million.
The Council approved Kaitu Weir Irrigation and Power Project of Kurram Tangi Dam in Spinwam area of North Waziristan at rationalized cost of Rs.
Revision of the federal program under 'Access to Justice Program' was accorded approval at a total rationalized cost of Rs.
The ECNEC also granted its approval for the establishment of 200-bed center of excellence for obstetrics and gynecology at Rawalpindi (Revised) at a total rationalized cost of Rs.
Approval for the construction, land acquisition, affected properties compensation and relocation of utilities for dualization of Rawalpindi-Kahuta Road (28.4 Km) including 4 lane bridge over Sihala Railway pass, Sihala bypass and Kahuta bypass at a total rationalized cost of Rs.
But the author makes a convincing case that gender stereotypes more generally, and not just the narrow self-interest of craftsmen, proved decisive in inspiring industrialists, government officials, production engineers, and foremen to propagate a vision of rationalized production that trapped women in low-wage, low skilled jobs.
The Prime Minister directed HEC to prepare 'Laptop-for-all Program' that shall provide Laptops to all eligible students; Extension of Water Resources for Faisalabad City (Phase-II) at a total rationalized cost of Rs.
Although mining accidents took a heavy financial toll on mine companies, no Comstock capitalists were ever killed by the daily gambles of mining and only rarely were white collar, middle-class employees affected by mining accidents.(22) When a fire raged out of control in the Yellow Jacket mine of Gold Hill for two weeks in the spring of 1869, killing 42 miners underground, the company experienced only a temporary halt in ore production, a financial setback that was soon calculated and rationalized in terms of temporarily reduced profits and higher stock assessments.(23) Nowhere was the transformation of risk along class lines more visible than in the development of Virginia City's frontier stock exchange.
For the Irish clerks who became warriors and keepers of wampum when the council fire was lit, the image of the fearless, risk-taking Paiute Indian affirmed their ability to be honorable risk-takers on the "frontier," despite there being little danger in these hunts and no resemblance to the actual culture of Paiute Indians.(51) Although miners and middle-class Red Men rationalized risk in profoundly different ways, all classes of white men on the Comstock could, at celebrated moments, affirm a common identity as manly risk-takers.
transmission lines project by SEPCO (Sukkur Electric Power Company) at a total rationalized cost of Rs 12.699 billion.
2) Distribution of Power Project aimed at expanding distribution network of SEPCO to meet growing demands in districts of Sukkur, Jacobabad, Shikarpur, Larkana, Ghotki, Qamber, Kandhkot, Dadu, Naushero Feroze, Khairpur, Benazirabad and Jamshoro at a total rationalized cost of Rs 3.825 billion.
ECNEC also considered a proposal submitted by Ministry of Communication regarding Construction of Motorway from Burhan/Hakla on M-1 to D.I.Khan at the rationalized cost of Rs.