The Hierarchy of Goals In companies, it is traditional to view the goals from the top of the
firm down to front-line employees as a chain or hierarchy of goals. Figure 3-1 illustrates this.
At the top, the president sets long-term or “strategic” goals (such as “double sales revenue to
$16 million in fiscal year 2015”). His or her vice presidents then set goals for their units that flow
from, and make sense in terms of accomplishing, the president’s goal. Then their
own subordinates set goals, and so on down the chain.
Policies and Procedures Policies provide day-to-day guidance employees
need to do their jobs in a manner that is consistent with the company’s plans and goals. Policies
set broad guidelines delineating how employees should proceed. For example, “It is the policy of
this company to comply with all laws, regulations, and principles of ethical conduct.” Procedures
spell out what to do if a specific situation arises.