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Utilitarian Organization

A utilitarian organization is a formal organization in which a group or individuals join to earn a monetary benefit or any other incentive provided to those who join—this is a big secondary group built on impersonal and transient connections.

What is a Utilitarian Organization?

A remunerative organization—a utilitarian organization—is one of the three divisions of a formal organization built in a certain way to achieve an organization’s goals and objectives in the most efficient manner.

Utilitarian Organization

Control in these groups is managed through a bartering system since both parties can gain from the collaboration. 

A utilitarian organization’s two major components are purpose and productivity since members are paid for their contributions to the cause through rewards and incentives.

A utilitarian organization that provides real benefits and a contractual kind of membership has some appeal.

Examples Of Utilitarian Organization

Colleges and universities are notable instances of utilitarian organizations in which students must pay expensive fees to obtain information and abilities that will help them in their future careers.

Another instance of a utilitarian organization is a business organization where an employee works for a corporation in exchange for compensation. Participants of the utilitarian organization are those who work for a living.

Large businesses recruit people to achieve their organizational goals, and they pay wages and salaries in exchange for the great labor that the employees put in.

A perfect example is an internship of a utilitarian organization in which individuals join a company or brand to learn the fundamentals of how to conduct themselves in a professional setting. 

The successful internship tenure opens doors to additional chances, which is why it is a perennial favorite among students who have recently graduated and want to try their hand at an internship before joining the firm of their dreams.

Utilitarianism relies on a few fundamental principles to assess the legitimacy of an action. As an example,

  • If the consequence of what is deemed good over evil triumphs, the action is correct.
  • In this sort of organization, happiness is the only rational consequence that should be attainable.
  • If the activity cannot maximize the degree of happiness, it should represent the wrong or bad decision, even if it is moral.
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According to the utilitarian organization based on the principles given above, happiness is always beneficial to an individual. If a chance to expand it presents itself, one should seize it with both hands.

The Utilitarian based Approach by Managers in an Organization

Managers in a company often use one of three approaches: virtue-based, positive/negative, or consequence-based.

If the manager takes a utilitarian strategy, also known as a consequence-based approach, he must consider all alternative options for adopting a particular sort of action. What are the implications of choosing this action versus the one you’re leaving behind—which must be carefully evaluated to decide which option is best?

Assume a neighborhood organizes a cricket match between two local teams. In this situation, the manager in charge of such activities will first try to determine whether arranging the event is fruitful or should be canceled to make room for another activity. What are the advantages of this scenario?

The event will make the neighborhood happy since everyone in the community will appreciate it. The company will be able to profit—but what about any dangers associated with the event?

For example, what happens if someone is harmed, the property is damaged, or the event causes a noisy population? It is up to the management to determine if the advantages exceed the drawbacks and eventually benefit society.

The manager’s benefit in employing a utilitarian-based strategy in the above example is that it will provide a popular type of entertainment and bring in more money due to huge crowds. The downside of using a utilitarian approach is that it ignores the rights of minorities who are opposed to the event.

Advantages Of The Utilitarian Organization

The following are the benefits of a utilitarian organization:

1. Loyalty 

The level of commitment of members in a utilitarian organization is significantly higher than in any other type of formal organization. The work climate in this sort of business is upbeat, and the employees are eager to contribute to the organization’s success.

Utilitarian Organization

There is a sense of responsibility and devotion to the organization that will finally fulfill its objectives, and this notion motivates the members to work even harder.

One of the advantages of a utilitarian organization is its members’ loyalty, which results in high retention rates, great attendance, and higher levels of production and efficiency.

2. Sense of belonging 

A utilitarian organization provides its members a sense of belonging since everyone joins the organization for a reason. Common tasks, projects, objectives, mission, vision, and goals give momentum to their cause, assisting in the effective fulfillment of the purpose.

Members are paid wages and salaries in exchange for their involvement.

3. Simple to Understand Concept 

The desire to eliminate pain and grief from life and replace it with an endless supply of happiness is a common sentiment shared by the vast majority of individuals.

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Every human being strives for pleasure and joy throughout their life because they do not want to live a life of sadness, pessimism, and sorrow. The utilitarian organization contributes to creating, constructing, and developing a society that focuses on tangible acts that promote happiness.

4. Tangible Benefits

Not everybody can labor for the betterment of society or other people. In normal conditions, money is an incredible motivator, and it is a utilitarian organization that encourages members to join such groups and fulfill their ambitions by earning enough money.

Utilitarian Organization

5. Secular Process

Utilitarianism is regarded as a secular procedure that will benefit everyone connected with these sorts of organizations.

6. Adheres To Democratic Principles

The utilitarian approach urges individuals to follow democratic values to achieve the proper level of balance. When the majority supports a particular activity, the action has the best possibility of being constructive and bringing happiness into everyone’s life.

7. Common Goals 

All stakeholders participating in a utilitarian organization are working toward a common objective. The organization is interested in meeting its objectives, tasks, and projects by the specified deadlines. The people who work for that company are interested in earning the most money as wages and incentives.

It is a win-win situation for all parties engaged because they both stand to benefit from the collaboration.

8. Balanced And Voluntary Involvement

There is no doubt that people join utilitarian organizations by choice. Still, they come in with expectations and are almost sure that the union will realize the projections. Members are rewarded for being part of the group—thus, they participate actively in every activity.

9. Greater Involvement

Utilitarian Organization is a volitional corporation—members join the group out of their free will and are paid to be part of the group. Therefore, the members participate actively in all the activities because they have a source of motivation.

The members are always ready to put in more effort to achieve the aligned goals—they are happy to add value to the organization.

10. Greater Mobility 

Members of a utilitarian organization can be easily mobilized to work collectively to achieve the goals of the organization—thus, the organization can rely on its members.

The organization motivates members by giving out benefits and incentives on top of their salary—this encourages members to be mobile and focus on working as a unit to achieve the goals set by individuals and the company.

A good example is when the deadline is around the corner, so the members of a utilitarian organization combine forces and work as a team to beat the deadline—the members responsible for that particular project put on extra effort and more time to accomplish the task in good time.

These members don’t work due to external pressure, but they are aware of the consequences of handing in the project after the deadline—late submission of assignments can affect their salary.

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Disadvantages Of Utilitarian Organization

The following are the disadvantages of utilitarian organization: 

1. Utilitarianism Can Be Unpredictable.

It is tough to predict the future—sometimes, we may try to predict what the future holds by analyzing the occurrence of events, but we hardly get a hunch about any event that comes true in the end.

Following this, it is wrong to ground ethical choices on the things that may or may not occur in the coming days. We must focus on the present things—live in the moment to work on something that’ll better our future to make the world a better place. 

2. It Also Relies On People Making Consistent Decisions.

Human beings are good at changing their mind—you can’t rely on someone to ask for the greater good if most people choose to do away with every structure that reinforces the health and wellness of a society.

People tend to look out for themselves without considering other people’s well-being—when faced with a difficult situation, people put themselves first regardless of their spirituality or upbringing. 

Utilitarian Organization


Why do people subscribe to religion? The aim of being saved isn’t to enable anybody else to find a certain level of everlasting salvation—but it is to establish a life insurance policy for the future that is unpredictable—hence this offers consolation to the soul.

3. Utilitarianism Relies On Multiple Definitions Of Happiness.

The definition of happiness depends on someone’s perspective—even though there are different meanings of happiness depending on a person, we can establish a standard ground on particular things.

In today’s world, It is nearly impossible to get two individuals with the same views. Human beings are complex—one man’s fish is another man’s poison. Therefore, we have two options—we could decide to settle on a standard definition of happiness or opt for the meaning suggested by the majority.

Related Questions 

1. What Are The Characteristics Of A Utilitarian Organization?

Productivity and purpose are the two key elements of a utilitarian organization—the members are reimbursed for their input to the cause through incentives and benefits. There are several affinities in utilitarian organizations which grant substantial interests and contractual membership types.

2. What Are The Types Of Informal Organization?

According to Dalton, Informal organizations are put into three categories: vertical, mixed, and horizontal. Horizontal groups are composed of members who are more or less in equal ranks and are in a sideways relationship.

3. Who Is Joining A Utilitarian Organization?

According to sociologists, people who join a utilitarian organization have a particular objective in mind—many individuals join this kind of corporation intending to get remuneration. In simpler terms, people are on the lookout to invest and make money for future use. 

About Sonia Kukreja

I am a mother of a lovely kid, and an avid fan technology, computing and management related topics. I hold a degree in MBA from well known management college in India. After completing my post graduation I thought to start a website where I can share management related concepts with rest of the people.