Difference in Organisations and Institutions
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Difference in Organisations and Institutions

The distinction between organization and institution is 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.

An organisation is centrally administered by authority from above moving down through a hierarchical structure.

An institution is not centrally administered. It is governed by values of an organization that are widely accepted and honored by individuals, such as a festival like Christmas.

An organisation has rules that are enforced; an institution has customs that are honored.

Organisation occupies the fourth place and institution the fifth place in the chain of social development that begins with an individual act and matures into social consciousness.

Act - Activities - System - Organisation - Institution - Culture - Custom - Usage - Consciousness


Over the centuries an organisation matures into an institution.

An organisation is to be controlled;         an institution is self-sustaining.
An organisation is partial;                             an institution is universal.
An organisation is physical;                         an institution is subtle.
An army is an organisation; its traditions are subtle values.
Elections are conducted by the government; festivals are celebrated by the people.
Market is an organisation;                            trade is an institution.

Institution:
Institutions are systems of established and embedded social rules that structure social interactions
·         Institutions can either be formal, in that they are designed to govern behavior, or informal, in that they govern behavior by socialization rather than overt practices.
·         Institutionalization refers to the process of embedding something, such as a concept, a social role, a value, or a logic within an organization, social system, or society as a whole.
·         Institutions can also be abstract, such as the institution of marriage.
  
Institutions are structures and mechanisms of social order and cooperation governing the behavior of two or more individuals. Institutions are identified with a social purpose and permanence, transcending individual human lives and intentions, and with the making and enforcing of rules governing cooperative human behavior.

Organisation:
Organizations are special institutions that involve
·         Criteria to establish their boundaries and to distinguish their members from nonmembers.
·         Principles of sovereignty concerning who is in charge.
·         Chains of command delineating responsibilities within the organization.

An organization (or organisation — see spelling differences) is a social arrangement which pursues collective goals, which controls its own performance, and which has a boundary separating it from its environment. The word itself is derived from the Greek word ὄργανον (organon) meaning tool. The term is used in both daily and scientific English in multiple ways."
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