What is the difference between organisation and institution

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 Your email address will not be published.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. An organization is governed by rules, regulations and policies, whereas customs and values are the regulating factors of an institution.

An organization has a certain life cycle, i. In contrast, an institution is enduring in the sense that they have the capacity of constantly growing, overcoming ability and adapting itself to extreme conditions, to take a step towards future. The primary purpose of an organization is to earn money or provide services to the members. As against, the main objective of an institution is to impart education or knowledge to the users. However, the foundation on which such institutions are created are: ethical behavior, a social consciousness, a strong moral fibre and societal acceptance.

These qualities are the very sinews, using which the body of the institution is nourished. No company can stay for long in the public domain if it does not practice behaviour which is ethically sound. No company can function for long without a social consciousness.

This is one reason why gangs like those which bootleg, crime syndicates, Dawood Ibrahim and Robin Hood types cannot carry on for ages. A strong moral fibre, which leads to actions like sustainability, equitable behaviours, fairness in dealings, is a sine qua non of an institution.

Clearly, very few would meet all the criteria, and, that too, fully. One has to plough through the labyrinthine thickets of corporate lore to pick out the gems. Views expressed by authors are personal. Falguni Nayar and Nykaa: The beauty and the beast of the market. UK outlines plans to save iconic red public phone. Is e-sport coming to the Olympic Games? As distrust of China grows, Europe may inch closer to Taiwan. Photo Of The Day: Play the clean game.

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Is it losing steam now? Image: Shutterstock. Get the latest stories, videos, and podcasts from Forbes India directly in your inbox every Saturday. It is also governed by rules and regulations.

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. Examples of organizations include the Army, businesses, charity organizations, schools, etc. About the Author: admin.