Abstract
Purpose, a fundamental concept for organized activity and mental functioning, is currently without developed and accepted theory. This paper offers an important component of any practical theory of purpose. The framework has been elaborated and tested in the process of action research. It reveals the structural foundations of purpose to be a five‐level hierarchical system whose function is the translation of values into action. The levels (each of which is a form of purpose) are labelled: Banner goal, mission, political aim, strategic objective and tactical objective. These levels are defined, their operation illustrated, their expression in social forms described and the relations of the levels to each other clarified. Examples of organizational dysfunction directly attributable to deficiency at each level are provided. Further implications and applications of the theory are suggested, and the limitation of its scope is noted.

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