What is the difference between institutions and organizations

There are two types of organizations. An institution is a social structure in which people cooperate and which influences the behavior of people and the way they live. An institution has a purpose. Institutions are permanent, which means that they do not end when one person is gone. An institution has rules and can enforce rules of human behavior. The words organization and institution are often used synonymously. While language permits this usage, theory requires that we make a clear distinction between the gross form organization and the more subtle form institution.

A school is an organisation; education is a national institution. Railways are an organisation; transport is an institution. Courts are organisations; law is an institution. Search this site:. An organisation is centrally administered by authority from above moving down through a hierarchical structure.

Institution is either a type of formal organization or practices and behavior pattern of a society. Organization refers to an organized group of people gathered together to achieve a particular purpose. Organization is a narrow term compared to institution. Institution refers to both abstract and concrete entities.

Institution is governed by customs and values. Organization is governed by rules and regulations. Examples of institutions include Church, marriage, family, Parliament etc.

However, when it comes to the institution, it goes beyond the goals of the organization. When does an organization turn into a institution? Serves a specific ethnicity? Has political influences and legislation? Has granting programs?

Not under a union organized entity? Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Key Differences Between Organization and Institution The differences between organization and institution are explained hereunder: An organization is a systematic collection of people, who work together for achieving the desired end, under a common identity.

Conversely, an institution is an establishment, that is dedicated to promoting a specific cause that can be educational, professional, social, etc. The structure of an organization can be centralised — where power lies in the hands of the supreme authority, or decentralised — where the power is disseminated.

On the other extreme, an institution has a decentralised structure, wherein power is spread to various levels of management.