This paper will present the historical development of quality. The meaning of quality in the contemporary bussiness conditions through quality control, quality assurance and quality management development to a complete quality management will be described. The influence of quality on organizations bussiness excellence and competitive advantage will be shown through basic items of quality management. It will cover the development of quality in the European Higher Education Area and the higher education system in Croatia. Quality culture development in higher education will be presented as the ultimate goal of improvement in the quality assurance system. The quality assurance system on a higher education institution through development, bodies and procedures, documentation, management norms, external and internal judgment of the system at the Polytehnic in Pozega will be presented as an example. Conclusion will cover the quality assurance system's development stage at the Polytehnic in Pozega and it's need for improvement with the purpose of quality culture development.