The School/college/division establishes its objectives based on the university goals & sub goals (http://president.wayne.edu/strategic-plan.php).  The department then establishes its objectives based on the school/college/division's objectives.  Many times the department objectives end up being the supervisor’s objectives if he/she is the head of the department.  But the supervisor will also have some of his/her own goals as well.  Then, taking into consideration the individual’s job responsibilities, individual objectives are established in alignment with the supervisor's objectives.