Hierarchy of objective

Objective have a hierarchy.They can be set at different levels of organization.They can be at following levels :

1. Corporate level objectives :They are strategic objective set by top management.They defined long-term desired outcomes.They consist of vision,mission and strategy.They are stated broadly.

• Vision :It states the reason for the existence of the organization.It defends the scope and boundaries of the present business of organization.It is the purpose of the organization.
• Strategy :It is a broad action plan for achieving objectives.It provide long-term direction and scope to an organization.

2. Business units level objective :They are set for each strategic business unit(SBU).They defined the business of the organization.They are desired outcomes for each SBU over long term in particular markets.They are set for key result areas,such as profit,market share,sales.They follow from corporate level organization.
SBU level objectives deal with the following aspects for each SBU:

• Long-term profanity
  
• Market share growth
• product category scope:product line and items
• Positioning among competitive
  
• Now business opportunity,etc.

3. Function level objective :They set specific targets for each function of SBU.The function can be operation,marketing,finance,human resources,research and development.They follow from SBU objectives.

• Lowering cost of production
  
• Market coverage in the chosen segment
• Level of customer satisfaction
  
• Fund generation
  
• Programmes for human resources development
• New products to be launched
  
• Advertising and sales promotion targets,etc.

4. Individuals level objective :They are related to daily or weakly perforation of each employee.They follow from functional objectives.They deal with :

• Level of output per employee
  
• Reject and waste
  
• Sales per salesperson
  

• Career planing and development,etc.