Difference between Institution and Organization

An institution is a system of a social and cooperative nature, it establishes and normalizes the behavior of the subjects. An organization is an organizational structure with the objective of fulfilling one or more goals.


They are social and cooperative institutions that are managed under legal commitments in order to normalize the behavior of a group of individuals or a society. It transcends their own wills, since it is known as the imposition of a project considered as a social good.

Their activity varies in each case, however, they elaborate numerous rules that are not very flexible: different are formally specific organizations and others are not, there are cases that do not correspond to a physical place, being interpreted as significant behaviors and customs for society.

Over time they have been developing, preserving order and social stability. For them to be constituted, intentionality, cognitive skills and simultaneous language are needed.

They can be the following:

  • scientific institutions.
  • economic institutions.
  • Legal institutions.
  • Legislative institutions.
  • Political institutions.


They are administrative structures and systems that are formed in order to achieve goals and objectives through the management of human talent. They have interrelated systems that fulfill specialized trades.

It is made up of individuals, administrations and tasks that establish a systematic structure of relationships that produce goods, services or regulations with the aim of meeting the needs of a community within an environment. Cooperation between its legislative parts is important for the existence of an organization.

Differences between institution and organization

  • An institution aims to manage the behavior of a social group, it can be physical or represented by beliefs and cultures.
  • An organization is a management structure formed in order to achieve goals. For its existence, coordination between its parts is required.

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