You may think there is no difference between organization and association. But one of the things that separate an association from other organizations is its nature, scope, and purpose. An organization is made up of individuals who are united by a common goal or interest whereas associations can be thought to represent groups or societies which have been created for specific purposes like PETA (People for Ethical Treatment in Animals), sports-related clubs, blind associations – the list goes on!
What is Organization?
The organization is a collection of people who work together for the achievement of specific objectives. It can be understood as one type of social system, which also includes all formal human relationships and divisions within it that align with its ultimate goal.
It also may be considered as the second most important managerial function. Organizations rely on the principle of division of work and set up authority-responsibility relationships. Proper planning is crucial for success in an organization because it relies on this to achieve goals through coordination between activities. Organizations are goal-oriented processes that aim at making them come true by being planned well and distributed among members appropriately.
What is Association?
An association is a group of people who come together to achieve specific goals for their organization and members. They have an open-door policy, but all meetings are held informal spaces such as conference rooms or office buildings rather than informal places like homes or parks.
People need to work together and be organized in order for associations to come about. Associations are like music clubs or trade unions where people take part in a group activity that is shared by everyone involved, making it successful as they all have the same goal of achieving something great.
Key Difference between Organization and Association
| Organization | Association |
| Organization refers to an entity that has been deliberately formed for achieving some particular purpose or goal | Association represents any group of people who have joined together in order to achieve common goals. |
| An organization typically does not allow everyone to join. | Association has an open membership and individuals can become members by paying a fee or making some other contribution. |
| Members have the right to vote in determining how profits are distributed | Members have the right to vote in determining how profits are distributed |
| In the organization, members are directly affected by any losses | they do not share liability for any losses |
| The leadership structure is more formalized | The leadership structure is informal. |
| An example can be your school. | An example would be the PTA at your school, which gathers parents to organize things such as fundraisers and other events |
Summary: Organization vs Association
- Organizations are established for a specific purpose and exist with an aim of creating some form of change in the world. Associations, on the other hand, can be started from scratch or come into being by chance depending upon their members’ goals; but they all share one thing – no set mission statement to fulfill
- An organization is created with intent to provide goods or services that benefit society at large, whereas associations may not have such lofty aspirations as organizations do.
- Organizations often create value through partnerships which help them achieve this goal while associations might occasionally engage in collaborations when it suits their needs without any long-term intentions
