INSTITUTION vs. ORGANIZATION. CONCEPTUAL DELIMITATIONS

Both organizations and institutions are social structures. On the basis of the institutions arethe formal rules and at the basis of the organizations are the interactions between peoples withcommon aims. The evolution of the institutions is explained by the institutionalism with its twoorientations: the new institutionalism and the old institutionalism. The last one was preoccupied bythe transformation of the economy and by the evolution of the technology and the newinstitutionalism explains the existence of the institutions from the individual’s point of view.Organizations were and are studied in present days from different point of views: organizationalstructure and culture, organizational change and development. The organization was classifiedaccording to several factors: aim, size, legal form, or their operational domain. Thecharacterization of the organization through metaphors such as machines, culture, brain, ororganism proves their complexity and diversity. Regarding to the relations between institution andorganization, the relationship could be characterised as interdependence because the organizationscan determine instituional changes, by offering a framework for the application of the rules.