Means reorganising to increase efficiency. The term is mainly used when cutbacks in costs of overheads are needed in order to reduce an organisation’s break-even point.
This may be achieved by:
• Closing one of a company’s factories and reallocating the production to the remaining sites
• Closing an administrative department and delegating its tasks to the firm’s operating divisions
• Delayering (removing a layer of management).
Public relations officers often use the term rationalisation as a euphemism for redundancy.