Difference Between Organization and Institution

organization a group of people, engaged in chasing the predetermined goals or set of goals. Indeed, it is a social system that ascertains all formal relations between the activities and the members. An organization is owned and controlled by one person or a group, who are the members, of the organization itself. The head of the organization is chosen either on a permanent or temporary basis, through voting at the annual general meeting, in which all the members of the organization participate. It incorporates specialization and coordination of activities of the workers, wherein the roles, responsibilities and authority are assigned to the members, to undertake tasks efficiently. It includes both profit and non-profit undertaking. There are two types of organization structure: Formal Organization Structure Line Organization Functional Organization Line and Staff Organization Project Management Organization Matrix Organization. Informal Organization Structure

Institution a receptive organization, which comes into being as a result of social needs and pressures, a form of organization, which is set up for an educational, religious, social or professional cause.

Key Differences Between Organization and Institution   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.e. they have birth, growth, maturity and decay. 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.