Organization Design:

A mechanistic design means the organization is characterized by machine like a standard

rules procedures and clear hierarchy of authority. Organizations are highly formalized and are also
centralized, with most decisions made at the top. There are various factors that will influence
whether an organization is more effective with a primarily mechanistic or other design.

Fig 7.- Mechanistic design of organization

(Source: Richard L. Daft – Understanding the Theory and Design of Organizations)

Centralized: this character is pertaining to the hierarchical level at which decisions are made. In
mechanistic design, the structure is centralized. Centralization means that decision authority is
located near the top of the organizational hierarchy. Knowledge and control of activities are
centralized at the top of the organization, and employees are expected to do as they are told.

In the company the decision making is at top management level. The company managing
director makes the final call. The employees do not involve in anyway in decision making.
Specialize Task: A task is narrowly defining piece of work assigned to a person. With a
mechanistic design, tasks are broken down into specialized, separate parts, as in a machine, with
each employee performing activities according to a specific job description. In the company, the
tasks are highly specified. The employees only do the work allotted to them.

Formal System: With a mechanistic design, there are numerous rules, regulations, and standard
procedures, Forma systems are in place to manage information, guide communication, and detect
deviations from established standards and goals. In the company, There are strict company policies
or operating standards with an abundance of documentation.

Vertical Communication: Mechanical Organizations emphasize vertical communication up and

down the hierarchy. Top managers pass information downwards to employees about goals and
strategies, job instructions, procedures, and so forth, and in turn ask that employees provide
information up the hierarchy concerning problems, performance reports, financial information,
suggestions and ideas, and so forth. In the company, Communication is a process between
managers and supervisors up to executives, there is little daily interaction if any.

Strict Hierarchy of authority: there is close adherence to vertical hierarchy and the formal chain
of commands. Work activities are typically organized by common function from the bottom to the
top of the organization and there is little collaboration across functional departments. The entire
organization is controlled by the vertical hierarchy. In the company the decision making is at top
management level. The company managing director makes the final call. The employees do not
involve in anyway in decision making.

Decision making in Cheema

Cheema for the most part pursues Programmed decision-making choices which are characterized
as dreary and very much characterized, strategies which exist for settling the issue.

Additionally, Cheema pursues Incremental Decision Process Model, puts less accentuation on the
political and social elements depicted in the Carnegie show, however informs all the more
regarding the structure grouping of exercises embraced from the revelation of an issue to its
answer.

At Cheema, they follow incremental chance for gradual change. There are continuous
enhancements as time passes by and there is no sudden or radical change, the main change that
appeared to be radical was in 2014 when there was steady loss because of an issue with the
administration. The subtleties are partaken in culture segment of the report. Innovative and item
enhancements have been in agreement to the upgrades in the business and there isn't any leap
forward innovation utilized.

Dual Core Approach in Cheema:

At Cheema Paper processes a best down structure is set up. Post the issue in 2014 the best
administration organized it so that laborers are allocated heads whom they answer to. The best
administrations communicate and has an immediate contact with the heads as it were. Along these
lines an extremely unthinking methodology was instituted.
 Fig 8.- Dual Core Approach

(Source: Richard L. Daft – Understanding the Theory and Design of Organizations)