Institution and organization

Differences between Institution and Organization
Differences between Institution and Organization

The Differences between Institution and Organization is given here. Institution and organization are often referred to as two synonyms, yet they represent different groupings. An institution is a system of a social and cooperative nature and orders and normalizes the behavior of individuals while an organization is an organizational structure whose purpose is to meet one or more goals.

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They are social and cooperative institutions that are governed by legal impositions in order to normalize the behavior of a group of individuals or a society. It transcends individual wills because it is identified as the imposition of a purpose considered a social good.

Their operation varies in each case, but they elaborate numerous rules that are not very flexible: some are formally established organizations, although some are not and in some cases they do not even correspond to a physical place, being understood as important behaviors and customs for society.

They have evolved over time, maintaining order and social stability. For them to form, shared intentionality, cognitive skills, and shared language are required.

They may be:

  • Scientific institutions.
  • Economic institutions.
  • Legal institutions.
  • Legislative institutions.
  • Political institutions.


These are administrative structures and systems that have been created with the objective of achieving goals or objectives through the management of human talent. They have interrelated systems that fulfill specialized functions.

It is made up of natural persons, administrations, and tasks that form a systematic structure of relationships that tend to produce goods, services, or regulations in order to satisfy the need of a community within an environment. Cooperation between its constituent parts is necessary for the existence of an organization.

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Differences between Institution and Organization

  • An institution is intended to govern the behavior of a social group, it can be physical or be represented by beliefs and cultures.
  • An organization is an administrative structure created for the purpose of achieving goals.¬†Coordination between its parts is necessary for its existence.

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