Rationalization/ˌræʃnələˈzeɪʃn/ Definition 1 of 3Pro Tip 1/3Business Context Used to describe strategies that make companies work better. After the merger, a rationalization of the two companies' roles was necessary. Pro Tip 2/3Not Always Positive It can imply job losses when companies aim to cut costs. The workers feared rationalization would lead to layoffs. Pro Tip 3/3Overarching Changes Refers to comprehensive and large-scale changes in an organization. The CEO announced a complete rationalization of the operational processes.