Modern performance measurement systems include customer satisfaction as an important performance indicator. From the standpoint of the Higher Education Institution (hereinafter HEI) in Serbia, key performance indicators are quality indicators used to assess the current situation; to identify service failures and to take on service recovery; to improve total quality of the institution and to determine the future development of the institution. In increasingly competitive and dynamic educational environment, the management of a HEI is aware of the importance of student satisfaction in the context of student motivation and retention, recommendations to potential freshmen, recruiting efforts and funding, as well as performance management. There are numerous direct and indirect indicators of student satisfaction. The main objective of this paper is to identify the parameters of educational process and non-teaching support that have the greatest impact on student satisfaction. Data analysis, conducted in this paper, provide information on the degree of student satisfaction and possible improvements in this area. This study uses standard and hierarchical regression to examine possible causes of student satisfaction. It is based on answers of 1541 students of the College of Professional Studies – Belgrade Polytechnic, collected during a four-year research.

The success of the Higher Education Institution (HEI) mostly depends on student satisfaction, as satisfied students are the basis of institutional existence, its growth and development. The previous does not mean diminishing other institutional performance factors, but the final goal of all processes is to retain existing students and attract freshmen through continual improvement of student satisfaction. The main objective of this paper is to analyse critically the results of measuring student satisfaction in the College of Professional Studies – Belgrade Polytechnic, in relation to the actions taken to improve the educational process. The study included 56 variables of the educational process and non-teaching support, and until now sample was comprised of 3275 undergraduates. For this paper, the variables of the educational process are separated, and the impact of improvements on student satisfaction is analysed by using appropriate statistical tools. The conclusions of this study may contribute to previous, actual and/or future researches in this field, and may equally serve to other HEIs (that operate in a similar environment) as a basis for enhancing student satisfaction.