The differences between organization and institution are :
•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.
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Urban Development Management Study notes for M. plan Sem-III
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