Within the context of the ongoing debate on the understanding of organizati
onal culture, this paper presents a cultural theory of organizations (grid/
group analysis) originating in anthropology. It is a generic model which pr
oposes a conceptual framework for comparing organizations, organizing and c
hange. The model identifies particular configurations of social relationshi
ps, dictating 'ways of life' (organizational cultures) which are both exclu
sive and differentiating. Three active cultures land one passive) are ident
ified: hierarchical, sectarian, market land fatalistic). Two case studies d
emonstrating the descriptive power of the model are presented. One is a met
a-organizational analysis of a large, complex organization: the Israeli Arm
ed Forces. The other is an Israeli high-tech industrial enterprise undergoi
ng a major organizational and cultural change. Finally, comparisons with ot
her typological organizational models, and current cross-cultural theories
of organization are discussed.