In every university organizational culture makes ground for quality management and is directly connected to development. Quality management is an important part of continuous improvement of any organization. It is focused on increasing the organizations’ effectiveness by setting quality objectives. Quality Management has been one of the most applied organizational change methods in the last two decades. Organizational culture is directly connected with effectiveness and performance of the organization – the stronger the organizational culture, the more effective is the organization. The aim of the paper is to evaluate theoretical aspects of organizational culture and quality management, their interrelation and impact on continuous improvement and development of university. In the result of the research interrelation mechanism of organizational culture and quality management is determined thus facilitating the identification and understanding of underlying factors for organizational excellency.