Difference between Organization and Institution
There are many similarities between the two concepts that create confusion in the minds of people. However, there are many differences between these two organization and institution that is discussed here:
Organization means a systematically organized collection of people, with a common goal and identity, like a business entity or a government department while an institution is a receptive organization which are relatively permanent and which comes into being as a result of social needs (for the satisfaction of basic human needs) and therefore can be seen as an indispensable part of the large society or community.
Key Differences are:
| Organization | Institution |
| The organization is systematically organized collection of like-minded people, with a common goal and identity, led by a person or a group thereon. | Whereas institution is a receptive organization with a high degree of sustainability, which comes into being as a result of social needs such as education, religious, social, and pressures and therefore can be seen as an indispensable part of the large society or community |
| Organizations are formed to achieve special goals and purposes. | While institutions human behavior. |
| Organizations have a smaller role to play in social lives as they may not always serve the basic needs of society. For e.g. World Health Organization (WHO) is involved in providing health solutions to the poor people. | Whereas institutions have a bigger role to play in social lives as they serve the basic. For e.g. the needs of society, educational institutions provide education in various subjects to individuals so as to make them learned and also to prepare them for their future lives |
| The organization is smaller and shallow concept. | Whereas institution is a bigger and deeper concept. |
| An organization has rules that are enforced. | Whereas an institution has customs that are honored act as rules. |
| An organization is to be controlled. | Whereas an institution is self-sustaining. |
| An organization is partial. | Whereas an institution is universal. |
| An organization is physical. | Whereas an institution is subtle. |
| For e.g. charities, companies, businesses, etc. | For e.g. Marriage, democracy, education, religion, etc. |
Conclusion:
All the institutions are organizations first, as it is the initial step of the institution-building process. Over the centuries an organization matures into an institution. There are only a handful of organizations that survive, grow and adapt themselves to reach the status of the institution.