This unit assignment explores the connections between organisational structure and the wider world of work in a commercial context. It highlights the factors and trends, including the digital environment, that impact on business strategy and workforce planning, recognising the influence of culture, employee wellbeing and behaviour in delivering change and organisational performance.
Case study Calmere House provides respite and residential care for adults with care needs. Established in 1974 by David and Anna Calmere, Calmere House’s ethos is centred around high quality care with a personal touch. David and Anna’s daughter, Kirsten, took over the business in 2002 when David and Anna retired. Kirsten’s consultative management style is similar to that of her parents. She values employee input into management decisions as employees have qualifications, skills, and experience in their specialist fields of work. Kirsten holds regular staff meetings as well as one to one check- ins. The purpose of these meetings is to communicate information about the progress of Calmere House against its business goals and to gain the views of employees on the best way to achieve these goals. The nursing staff hold handover meetings at the end of each shift and work well as a team. Employee retention is high, and employees feel strong engagement and commitment to the residents, their co-workers and to Kirsten. When an employee leaves, co-workers participate in the selection process, with behaviours viewed as being as important as qualifications and experience. Onboarding includes details of the history of Calmere House, with Kirsten telling stories about how her parents founded the Company and sold their own home to raise the money needed. Policies and procedures are limited, with informal ad-hoc approaches in place. Calmere House has a flat organisational structure with all 42 employees reporting directly to Kirsten. After more than two decades of running the care home, Kirsten has now decided that she would like to pursue her own, rather than her parents’ interests. In addition, Kirsten is worried about continuing increases in utility and staff costs and feel these may compromise residents’ care. Kirsten decides to sell the business and use the money raised to start her own new business, a spa and wellness centre. After great deliberation, Kirsten decides to sell Calmere House to Chaffinch Group, a large care home company. Kirsten feels that Chaffinch Group have the resources to invest in much needed refurbishment of residents’ rooms and facilities and will provide her employees with greater job security. The sale goes ahead. Kirsten advises the employees of the sale and explains why it was necessary. Employees are shocked and find it hard to believe that the sale will go ahead as Kirsten had managed the business with passion and Calmere House was the focus of her life. Chaffinch Group appoints a manager, Kath, who has worked for Chaffinch Group for five years, and the Company starts to refurbish rooms. Chaffinch Group change the organisational structure to a hierarchical, bureaucratic structure. The workforce reports to Kath, Kath reports to one of eight area managers, who reports to one of two general managers, who reports to an operations director. Kath’s management style is autocratic; she gives instructions and expects them to be followed without discussion. When challenged by employees she responds, “I know what Chaffinch wants, and they need to see a return on their investment”. Chaffinch Group introduces the same policies and procedures in Calmere House that are in place throughout the rest of the Group, advising employees of these by email. The People team at Chaffinch Group consists of a people manager, a recruitment advisor, an employment relations case advisor, and an administrator. 5CO01 Learner Guidance for Assessment ID CIPD_5CO01_ June 2025 Residents are also becoming disgruntled. Initially, they welcomed the idea of room refurbishments but have found that the rooms now lack individual character, and all look the same. Previously, permanent residents could choose the colour schemes and decor of their rooms and great care was taken to ensure the residents preferences were actioned. As time goes on, employees start to leave as they do not like the new culture; they are often replaced with agency workers. Kath notifies the Agency of the requirement for the roles, the agency workers’ qualifications and experience are checked by the Agency and an agency worker is offered the work. Chaffinch Group does not undertake any further assessment of their suitability. In addition to employee turnover increasing, sickness absence has also risen. Existing employees are starting to feel hopeless and are becoming more dissatisfied as they find that: their workloads have increased as they cover absences; they miss the support of co-workers who have left; they work longer hours to reduce the impact on residents; they feel their views and opinions are no longer sought or valued; and they no longer know what the business is planning or how plans will affect them. Overall, employees feel that the change in ownership is not positive and was not managed well. Chaffinch Group is also unhappy. Calmere House is not generating the income anticipated due to long-term residents choosing to move to alternative care homes and difficulties in attracting new permanent residents and new respite care residents. Chaffinch Group are wondering why a previously stable workforce now has high employee turnover and why Calmere House has changed from the care home that had a waiting list of potential residents to one with empty rooms. Chaffinch Group have set a goal to fill 100% of resident rooms within six months.