Performance Indicators Development in Function of Higher Education Quality Monitoring

The aim of this paper is to explore issues of higher education institution's performance indicators development in Croatia. Accepted standards and regulations require defining of key performance indicators, but the process and the method of their choice and the definition is optional to institutions. Higher education institutions are obligated to measure and track performance. They need to define key performance indicators, in accordance with the Standards and Guidelines for Quality Assurance in the European Higher Education Area (ESG) and defined strategic goals. Tracking performance is important for program financing of higher education and performance monitoring of selected institution's program goals and higher education in general. For higher education institutions, it is important to monitor and improve the quality. For that purposes they need to develop adequate and comparable performance indicators. In order to create comparable indicators it is necessary to conduct a detailed analysis of performance measurement of related higher education institutions in Croatia and the European Higher Education Area. The basis for performance measurement is information that institution owns, acquires and processes. In order to be relevant, indicators need quality information basis for their measurement. This paper analyzes the current performance indicators of selected institutions from Croatia, Great Britain, Canada and Australia. Based on the analysis, as the result of work, we propose indicators for one higher education institution. Authors propose a methodology for development of indicators, as well as a way of measuring and monitoring performance.