An institution is a system of rules and norms created by humans that guide and limit social behavior. Most definitions of institutions agree that they last over time and are stable. Examples include laws, rules, traditions, and social norms. Some institutions are formal, like governments, while others are informal, like customs.
Institutions are important in many social sciences, such as political science, anthropology, economics, and sociology. Émile Durkheim described sociology as the "science of institutions, their origin and their functioning". Some large institutions, like the family or money, are called "meta-institutions" because they include smaller related institutions. Institutions are also important in law, which creates and enforces formal rules. Historians also study how institutions begin, change, or disappear as part of political, economic, and cultural history.
Definition
The term institution has many definitions. Some definitions include informal customs like handshakes, while others only include formal systems with clear rules and structures.
Wolfgang Streeck and Kathleen Thelen describe institutions as "building blocks of social order" made up of shared expectations about behavior. Sociologists often include informal practices, while political scientists may focus on formal rules enforced by third parties.
Jack Knight defines institutions as shared rules that shape how people interact. These do not include personal habits or one-time customs.
Randall Calvert defines an institution as a stable way people behave in a situation, where most follow the rules because they expect others to do the same.
Robert Keohane describes institutions as lasting sets of rules—formal or informal—that guide behavior, set roles, and shape expectations. Samuel P. Huntington defines them as regular and valued patterns of behavior.
Avner Greif and David D. Laitin say institutions are shared systems of rules, beliefs, and norms that shape behavior and create patterns in society. They explain that organizations are one kind of institution that can shape what people believe and how they act.
Most scholars agree that institutions last over time and bring consistency. Examples include laws, rules, customs, and social norms.
Although "institution" and "organization" can sometimes mean the same thing, Jack Knight points out that organizations are usually smaller and have their own internal rules.
Geoffrey Hodgson says institutions are not just behaviors, but systems of rules that shape how people interact.
