Business terms and jargon explained. Your business dictionary

What is Institutional Capacity

The official capacity of an organisation when it was planned and created. This does not mean that it cannot go beyond this limit but it is the capacity that it was created for, e.g. a school is designed for 400 students. It can accommodate more, but for the best result without strain it's limit is 400.

Can be used to describe the capacity of an organisation in terms of what functions or objective an organisation has to be considered successful. , E.g. a school not only educates academically but is a social institution where students can get advice, read book and gather information in a library, learn sports music and other more social skills to further their development.

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Term created / updated 2006-11-14 16:22:10

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