SKS is a conglomerate working for army welfare that has failed to achieve expected profits despite restructuring. The main problem is lack of proper employee management. Recommendations include: 1) Offering golden handshakes to underperformers after performance improvement period; 2) Using external training to upskill all employees as roles require decision making; 3) Establishing performance reviews and offering voluntary retirement packages to low performers while preventing lawsuits. A proposed solution is to notify underperformers, retrain or offer severance, reshuffle roles, and establish clear policies for fair termination packages to improve productivity.

1. Case overview:
Sena Kalyan Sangstha (SKS) is a one of a kind conglomerate that has been working for the welfare
of ex-servicemen and their dependents since its inception. With a vision to serve entire community
of army personnel and their dependents through profits generated from commercial ventures and
a mission to produce top of the line consumer products for customer to ensure return of investments
for beneficiaries at the same time contributing to a plethora of welfare activities is what SKS stands
for. Although its inception began with a tall structure, in 2015, through calling an external
consultant firm, SKS restructured themselves into a flat organization in order to maximize profit,
distributed workload and to create a more fluid flow of command.
Despite having a distributed organogram, dedicated departments and fundamental restructuring
SKS has failed to acquire the expected results in terms of roi and profit. Both SKS and the
consultant firm believe that the issue lies elsewhere.
Core Issues:
1. Handling the poor performing manpower
2. Lack of performance evaluation system
3. Employee recruitment and training process
Problem Identification:
The main problem that has been primarily playing a role in the downturn of SKS is the absence of
proper employee management at the key point of the organization.
Alternatives, recommendations and justification:
1) Segregating the underperforming employees with a golden handshake or keeping
them:

2. Recommendation: As they will not add to the profitability of the company, offering golden
handshakes to underperforming employees after giving them a short period time for
improvement would be the best course of action.
2) Initiating in house training for various staff levels or bringing in external trainers:
Recommendation: In a flat-structured organization, all of the employees play a vital role in
decision making. So it requires the employees to be skillful. SKS should opt for external
training facilities since their employees lack the skill or mental energy to organize in house
training as same time ensuring no momentum loss in business operations.
3) Placing strategies and policies beforehand to avoid any and all potential lawsuits
regarding the golden handshake
Recommendations: The management should be upfront yet human in their approach, care
should be taken so that employees chose the golden handshake voluntarily also including an
NDA clause should be added to avoid future ramifications.
4) Implementing an employee evaluation system or sticking to old system
Recommendation: SKS should adapt an employee evaluation system as soon as possible
before opting for any structural and human resource change. Instead of old annual review
system, most modern day companies are going for instant feedback system. The problem with
annual review is that it makes people accountable for past behaviors and less competitive. On
the other hand, in the instant feedback system, supervisors are giving people instant feedback,
trying to make individuals’ own goals and handling out small weekly bonuses to employees
they saw doing good things. SKS should adapt instant feedback system to get the best out of
its’ employees.
5) Bringing change to the hiring policies or keeping the old hiring process in place
Recommendations: Some changes are required in the hiring policies of HR like addition of
an external advisor free from military influence to the recruitment panel for more transparent
recruitment. Even going as far as training recruits before hiring them.

3. Proposed solution and policy making:
While SKS has always valued the welfare of citizens both from external and internal
perspective some rigorous changes are in demand in order match the mercurial flow of business
trends and emerging competitors to bring in profits. Although laying off shouldn’t be the first
choice of any company as it comes with both direct and indirect cost but if no other alternatives
fit the solution it is way to go.
The time has come for SKS to adapt a voluntary retirement scheme (VRS) aka the golden
handshake to shed out underperforming employees so that those positions could be filled by
their skilled and experienced counterpart’s.
Before moving forward with the layoff procedure, the first and foremost step would be
establishment of a proper evaluation system within the company. Personal KPI’s should be set
to each and every employee evaluated on periodic manner to judge their performances. This
will pave the wave to segregate the underperforming employees from the rest.
The second step would be to notify each ‘underperforming employee’ with an ‘at risk’ email
from HR with new KPI’s as well as a definite time limit so that they can improve their
performance and gain necessary skills as well as giving them the opportunity to look for jobs
elsewhere.
The third step would be to reshuffle the workforce based of performance and skillset so that
employees at positions where when are most productive.
If all else fails the last step would be to adopt a golden handshake process:
GODLEN HANDSHAKE POLICY
1. Each and every employee to be laid off must be notified with full detailed reason at least
30 days beforehand as set forth by section 19.1 of Employment of Labor Act,2006.
Employees would be paid in full from the day notification to his termination for his work.
2. No worker, who is a member of any Provident Fund, shall be deprived due, to
retrenchment, dismissal, discharge or termination of service, of the benefit of the Provident

4. Fund including the employer's contribution thereto, if he is entitled to it under the rules of
that Fund. (Section20)
3. Every worker (other than a casual worker) shall be entitled to a certificate of service at the
time of his retrenchment, discharge, dismissal, retirement or termination of service.
(Section 21)
4. Termination of any employee would not be based on reasons related to age, ancestry, color,
family status, gender, marital status, mental disability, physical disability, place of origin,
race, religious belief or sexual orientation.
5. Laid off employees as defined by the Labor act, means the failure, refusal or inability of
an employer on account of shortage of coal, power or raw material or the accumulation of
stock or the break-down of machinery or for any other reason, to give employment to a
worker whose name is borne on the muster rolls of his shop, commercial establishment or
industrial establishment, would be eligible to apply to post which may open up in the future,
however, this doesn’t provide any assurance of interview or job offering.
6. Each laid off employee would be entitled to golden handshake packages which would
include severance and benefit package according to the class they fall in, as well as
accrued vacation and outplacement fees.
7. Each and every laid off employee must sign an NDA and release form to enjoy the
benefits of the golden handshake. This will prevent further lawsuits about the process.
8. The compensation money would be equal to (3 months of salary*number working years
)+(1 month of salary*years left before contract expiry).
Handling lawsuits and humanitarian issues:
Although the aforementioned policy will help SKS conduct a smooth laying off process as well as
exempting them from any potential lawsuit, but we must not forget that we are dealing with human
beings and their emotions should be considered when delivering the news. Immediate managers
should delegate the new to them personally and be as transparent as they can to shed light of the
reason of termination. All laying off procedure must be done on the same day so as to avoid panic.
Employees should be requested to not to inform their peers until their termination has been
declared officially. After the layoffs, the surviving employees may also panic about their job

5. security. We have to ensure them that the decision was for the company’s overall good and they
can work like before and the company values their contribution.
Further recommendations:
Creation of a business intelligence team: The BI will analyze and take key decisions before
going into new ventures and creating new verticals for the company. They will also supervise the
employees and give feedback.
Creating leaders at staff level: While staffs were trained to follow order instead of thinking in
army. So creation of ground level leaders would be the best course of action to generate innovation
and creativity.
Shedding out surplus work force in case of venture closure and integrating them to other
ventures: Surplus workforce should be let go with opportunities to apply to opened position in
other ventures of the company that matches their skillsets.
Conclusion:
In our proposed solution, the existing poor performing workforce will either go through extensive
training to develop skillsets or be offered with a reasonable golden handshake. The process will be
flexible for both parties and will eliminate potential only the best candidates will be selected. The
performance evaluation system will monitor their activities and give instant feedbacks to increase
their productivity. By following the steps we proposed, we believe that SKS will reach their desired
goals.