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Organisation losing its central authority becomes an institution.


Writing about the principles and powers of Organisation and Institution one can find any amount of material, but they come to an end sooner or later. Should one attempt to distinguish one from the other, he enters into a creative zone of a society that never ceases to expand, each time with a touch of that evolutionary immanence. The above statement is one such from the point of authority, a topic that is less striking.


An organisation is mostly one of several systems that are made up of a chain of activities whose basic unit is an act. The inherent value of an organisation lies in the way two systems come together to enhance the powers of each, in addition to creating new powers. The parts of an organisation are visible; its source of power is invisible, like the emotional power of poetry. Stated in prose, an idea is comprehensible; put poetically, the words remain eternally in the memory of human experiences. An arrangement upgraded into organisation is like prose becoming poetry.


Central authority is external. It acts through a hierarchy, imposes uniformity of action, creates efficiency. That is organisation.


Individual authority is internal. It acts through values, urged by a desire to serve the community, takes efficiency to its human heights, distinguishes by its uniqueness of expression. It is self sustaining. It is institution.


  • A modern thinker said the change is from a pyramidal vertical hierarchy to a flat uncentralised, self-regulating authority.

His idea was received as an original addition to the growing body of human knowledge.


The most striking example of this phenomenon is the creation of the VISA International credit card system, whose efficiency has excelled anything that was known before while its reach is ever widening.

  • Organisation is in the gross, physical, material plane.

Its powers do not come from anywhere that can be met by the eye.

  • An institution is less visible to the eye.

All its powers are from the psychological plane of the society.

  • It takes centuries for an organisation to mature into an institution.
  • Organisation and Institution are the expanded social version of a house that houses a home that is a family.
  • Organisation has been the mainspring of Social Development.
  • In England of today, we can say, Royalty is an institution that presides over Democracy that is an Organisation.

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