What is Utilitarian Organization and Its Types?

A utilitarian organization is a formal group where individuals or a group of people come together to receive a reward, which is usually monetary or some other form of incentive. This type of organization is characterized by its large size and temporary, impersonal relationships.

What is a Utilitarian organization?

A utilitarian organization, also known as a remunerative organization, is a formal organization that is structured with a specific purpose of achieving the goals and objectives of an organization in the most efficient and effective manner. This division is one of the three categories of formal organizations.

In utilitarian organizations, control is maintained through a system of bartering as both parties stand to gain from their association. Purpose and productivity are key elements of these organizations, with members compensated through benefits and incentives for their contributions. Additionally, utilitarian organizations offer tangible benefits and a contractual membership structure, fostering a sense of affinity among members.

Examples of utilitarian organization

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Institutions such as colleges and universities are prime illustrations of utilitarian organizations, where students are required to pay substantial fees in exchange for knowledge and skills that will prove advantageous in their future careers. Likewise, businesses are another form of utilitarian organization, where employees work for a salary as compensation. Individuals who work to earn an income are considered members of such organizations. Large establishments hire employees to ensure their organizational objectives are met and offer wages and salaries as compensation for the demanding work that is expected of them.

, an action is considered valid if it maximizes overall happiness and minimizes overall suffering. Internships, in this case, serve as a means for individuals to gain valuable experience and knowledge, which can eventually lead to a fulfilling career. It also benefits companies by providing them with a pool of potential employees who have already demonstrated their capabilities and work ethic. Therefore, internships are not only beneficial to individuals but also to the society as a whole.

Action is correct if the outcome of what is considered good over evil triumphs

Happiness is the only reasonable outcome that should be possible in this type of structure

It is believed by the utilitarian organization that an individual's happiness should always be prioritized. Therefore, if an action fails to bring about maximum joy, it may be necessary to choose an alternative, even if it goes against moral principles.

The utilitarian based approach by managers in an organization

The managers in an organization generally adopt either a virtue-based, positive/negative or a consequence approach.

When applying a utilitarian approach, the manager must consider all possible options before taking a specific action. This entails thorough evaluation of the consequences of the chosen action versus the one that is not pursued. For instance, when organizing a cricket match for two local teams, the manager would need to ascertain the event's viability and productivity. This involves assessing the benefits and drawbacks of the event, such as community happiness and potential revenue generation versus the risks of injuries, property damage, and noise pollution. Ultimately, the manager must determine if the benefits outweigh the negatives and if the event will ultimately benefit society.

Advantages

While a utilitarian approach may attract larger crowds and result in increased revenue, it can also lead to the neglect of minority voices and their rights. In the case-example mentioned above, the manager's decision to prioritize entertainment and profits may come at the expense of those who do not support the event.

The advantages of the utilitarian organization are as follows-

The level of loyalty in a utilitarian organization surpasses that of any other formal organization. The positive work environment fosters a strong desire among members to work towards achieving success.

The organization's members feel a strong sense of duty and dedication, driven by the belief that their efforts will lead to the fulfillment of their goals. This motivates them to work diligently towards the organization's success. A utilitarian organization also enjoys the advantage of having loyal members who exhibit high retention rates, attend regularly, and perform with greater levels of productivity and efficiency.

Belonging and purpose are integral components of a utilitarian organization. Members are brought together by a common goal and shared tasks, projects, objectives, mission, vision, and goals provide a sense of momentum and fulfillment in achieving their purpose.

The members are rewarded for their participation through wages and salaries.

3. Easily understood concept

and well-being for all its members. This is a fundamental principle that is shared across many cultures and is the underlying objective of many social and political systems. Ultimately, the goal is to create a world where individuals can thrive and experience a sense of fulfillment in their lives.

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For some individuals, working towards the betterment of society or others may not be a viable option. In such cases, tangible benefits serve as a great motivator, and organizations that offer monetary rewards attract individuals who wish to accomplish their goals while earning a decent income.

5. Secular process

Utilitarianism is considered a secular process that will benefit one and all that is associated with these types of organizations.

When it comes to finding the right balance, the utilitarian approach emphasizes the importance of democratic principles. By taking into account the opinions and preferences of the majority, this approach aims to maximize productivity and happiness for everyone involved.

All parties in a utilitarian organization work towards a shared objective, with a focus on achieving organizational goals, tasks, and projects within specified timelines. At the same time, employees are driven by the desire to earn competitive salaries and incentives.

It is a win-win situation for both the involved parties as they both have something concrete to gain from the association

8. Balanced and voluntary involvement

is observed among members of utilitarian organizations as they voluntarily join with certain expectations that are fulfilled through the association. The members are incentivized to join the group and as a result, their level of participation in all activities is significantly higher.

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Members of a utilitarian organization are motivated to participate in all activities due to their voluntary inclusion and payment for their services. They strive to contribute their best efforts towards achieving the organization's goal and making a positive impact.

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A utilitarian organization benefits from enhanced mobility, stemming from the collective efforts of its members towards achieving a common goal. The workforce is driven by incentives, benefits, and salaries, which propel them to move forward and align their objectives with those of the organization. This agility and mobility among members contribute to the organization's overall success.

In such cases, the team members of a utilitarian organization willingly put in extra effort and work beyond regular hours to meet a looming deadline. They recognize their responsibility and the impact it could have on their remuneration if the project is not completed on time.

Disadvantages

The disadvantages of the utilitarian organization are as follows-

Interpersonal relationship 

In a utilitarian organization, fostering good interpersonal relationships is encouraged. Employees are hired with a specific goal in mind, and their connection to the organization is primarily driven by the financial compensation they receive, which in turn enables them to achieve their personal objectives.