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Definition of

rationalization

General Management

measures taken to increase organization's efficiency the application of efficiency or effectiveness measures to an organization. Rationalization can occur at the onset of a downturn in an organization's performance or results. It usually takes the form of cutbacks intended to bring the organization back to profitability and may involve layoffs, plant closures, and cutbacks in supplies and resources. It often involves changes in organization structure, particularly in the form of downsizing. The term is also used in a cynical way as a euphemism for mass layoffs.

Definitions of ’rationalization’ and meaning of ’rationalization’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’rationalization’ and other financial terms with our online QFINANCE Financial Dictionary.

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