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.