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They are radically different. A table in Word, just displays your data in a tabular form. A pivot table has a lot of functionality, enabling you to do things like calculations, picking different types of calculations, switching the table layout, changing what pieces of the data that it is based on that you use. Pivot tables are used to analyse data and simply manipulate the results as you do so. Tables in Word can actually do simple calculations, something many people don't even realise, but they can't do the same kinds of things a pivot table can do. Pivot tables are closer in their function to a Crosstab query in Access, than to a table in Word.

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