This 4-year study of 12 community colleges examined the institutional policies and administrative practices that encouraged or discouraged effective faculty behaviors. The study focused on faculty and administrative subcultures and the learning environment that they help to create in these open-door institutions. The study found that different community colleges exhibit different cultures and that these cultures can be defined by a common set of structural variables. Institutional culture appeared to directly impact the educational environment and the level of effective teaching practices varied significantly with the type of culture in which teachers were employed. An institution's degree of success in providing quality teaching and learning experiences appeared to correlate with whether the college fell within an adversarial, faculty-dominated, administratively-dominated, or shared culture domain. Those community colleges which possessed shared cultures tended to create the highest quality learning environments. Based on these findings, suggestions are offered on ways in which institutional leaders can effect change in the learning environment within the three other cultural domains. Also noted is the relevance of total quality management approaches to organizational improvement. Contains 27 references. (GLR)