RATIONALISATION

BBA -2
(Xavier’s)
RATIONALISATION…..
 It is an application of the dictates of reason
to all activities.
 It is a conscious movement to eliminate
waste and inefficiency, scientifically and
logically by some sort of joint action and
collective effort b/w all the firms operating
within one industry.
 Under rationalisation, emphasis is primarily
given to two vital branches;
-- scientific management in every unit
-- joint action thru’ business combination in
industry.
APPLICATION OF RATIONALISATION…
Took place in 3 stages –

 Planning, including integration or

combination and also exact market survey.
 Re-aarangement or re- organization of
equipment and mc/s by standardisation &
simplification.
 Development thru’ extension of
divisionalisation involving greater
automation.
EFFECTS OF RATIONALISATION ON
WORKERS…
 Fear of large scale unemployment
 Adverse effect on skilled labour.

 Loss of human factor in industry.

 Fear of Exploitation.
CRITICISM AGAINST
RATIONALISATION..
 Price policy of Rationalised Industry.

 Danger arising from mass production and

specialisation.
SOME TERMINOLOGIES…
 Technical Rationalisation– It aims at
regulating and modernising the internal
working of firm by introducing labor-saving
devices and replacement and modernisation
of fixed assets.
 True Rationalisation– It demands the
consideration of biz not only in its own purely
selfish aspects but also social aspects.
`

DHANYAWAD