Apparatus and methods are disclosed for managing master data in a master data management (MDM) environment using classification hierarchies. According to one embodiment of the disclosed technology, a method of classifying master data includes receiving a classification hierarchy defining one or more dimensions and one or more relations between a set of hierarchy levels, generating a dimensional level by associating at least one of the dimensions with a hierarchy level, the dimension defining a set of valid values for nodes associated with the dimensional level, associating one or more nodes with the dimensional level, and generating master data classifications for an MDM environment based on the classification hierarchy and the associated nodes, where one or more objects of the master data classifications are assigned valid values based on the associated nodes.