In planning, objectives define what an organisation wants to achieve. They must be specific, measurable, and clear, so that efforts can be directed toward achieving them effectively.

The other statements are incorrect because:

• Policy provides broad guidelines for decision-making at all levels, not just top management.

• Procedure specifies the sequence of steps to be followed, not what to do or not to do.

• Rules are specific statements of actions or non-actions, not broad plans covering large activities.