In the liberalized Indian economy, businesses today face the winds of change, deregulation and competition. The present research seeks to identify the redesign mechanism (such as uncertainty reduction, differentiation and integration) in improving organizational performance and to establish the relationship between the two for a specific sector in the context of globalized economy of India. An FDR (Flexible-Dynamic-Rigid) model is developed for the specific sector such as the chemical and allied industries, which clearly indicates the influence of the design parameters on the organizational performance. The optimum value of redesign mechanism to maximize the corporate level performance has been investigated and also the relative importance of the different levels of the design parameters has been ascertained in respect of their impact on the performance. The significance and relevance of the research lies in the fact that organizations in the specified sector, need to understand the volatility of the market and also its strength for structural adjustments internally, through creative restructuring. This may serve as the base for future research and strategy formulation.