Type: Evaluation Essays
Sample donated: Renee Gutierrez
Last updated: June 23, 2019
The Utilitarianism theory is a theory of simple view,consisting of the common right and wrong judgement of the business decisions. Thevalue of which can be determined by conducting a cost vs. benefit analysis ofall the decisions taken. As per this theory, the good as well as the bad aspectsof a decision should be measured in order to determine if it’s viable or notand as long as an action or decision is proving to be more good than the bad,it is deemed to be viable.
This theory follows the simple principle that allthe actions have equal intrinsic good or bad aspects and in order to adoptthem, they must be objectively analyzed and studied for the overall consequenceof an action. The dash theory, this particular theory advocates that any decision that leadsto good results is right, even if it was made for the wrong reasons, and itseparates the right actions from the right moral decision. For one followingthis theory, making a right moral decision means that they must make a decisionthat will be leading to a good result. What they must do here is that they mustevaluate on basis of the consequences of an action and after the analysis theymust choose their next steps accordingly. The institutions must therefore evaluatethe positive and negative aspects of an action in order to determine if it’sright or wrong, and as long as an action is proving to be more positive ascompared to the negative consequences, it can be deemed to be right. Followingthe Utilitarianism theory can help all institutions as it is the simpleprinciple that all the actions or decisions have both good or bad effects andthey must be carefully analyzed and evaluated in order to deduce the overall consequenceof an action. Behaviouraccounting or human resource accounting is a form of accounting that the manyinstitutions and organisations follow in order to utilize the most abundant recourse,this theory considers “people” as a resource.
People could be defined as boththe employees of the organisation as well as their end users. The ultimate aimof every business is profit maximization. In order to do that, theorganisations need to understand the buying behaviour of the end user as wellas the elements that lead to this buying behaviour. Without having a thoroughunderstanding of this, it is impossible for the business to gain more end usersand expand in the market. This is true, specially so in the increasinglycompetitive market of today.
Thus, the organizations should create a end userprofile that helps them in strategizing and targeting the desired end users andachieve maximum efficiency out of their efforts. Another method to make the endusers loyal to the organisation, is to serve the end users in a way that helpsthe organisations in gaining reference from them and makes them recommend theorganisation, product or service to their friends circle and family. In orderto do this, the organisations should first understand the reason why end usersare inclined towards their products or services. This can be for rational reasonsor emotional reasons. However, it is observed that the end user makes thesedecision based on their mind using logic and comparison.
The consumersalways try to make rational decisions which are driven by self interest, andinvolve a careful evaluation of all the options that are available to them,before making or finalizing any decision. The primary objective is always tomaximize the value for money, personal satisfaction and utility that theyobtain from a product or service.