AC 1.1 – Evaluate Flat vs Hierarchical Structure: Kirsten vs Chaffinch Group

The non-hierarchical flat structure suited Calmere House with Kirsten largely due to the size of the home and how people had to collaborate. Staff meetings, open discussion, and participation in decision-making were common. A small care home can have such an arrangement working quite well since communication is not complicated, relationships are strong, and people feel trusted. This appeared to result in high retention, commitment, and a close team culture, making the structure evidently suitable to a great degree.

The central advantage of this structure was that it endorsed involvement and trust. There was not excessive control of employees, and they appeared to feel valued in terms of knowledge and experience. This is significant in a care environment, where day-to-day communication and teamwork directly influence the quality of care. According to CIPD, organisation design must reflect the needs of the organisation and aid its functioning, and in the case of Kirsten the flat structure was befitting the culture and the manner the home had evolved over time [1].

The structure was, however, limited. The greatest problem lies in the fact that too much was placed upon Kirsten. She was the centre of communication, decisions, and oversight, with all 42 employees reporting directly to her. This can work when the business is stable, but becomes harder to maintain as it grows, needs change, or the organisation expands. Even though the flat structure served the home well over a long period, it was not particularly robust in terms of long-term efficiency and formal control.

The hierarchical bureaucratic system implemented by Chaffinch Group is appropriate to a certain degree, as it is more reasonable in a larger organisation. A group operating several care facilities will require more transparent reporting relationships, more uniform operations, and clear lines of control. This assists in consistency and accountability. In principle, a hierarchy is no bad idea when it comes to an extensive group such as Chaffinch.

However, it did not fit well with Calmere House as applied. Employees were accustomed to participation, and under Kath they were told what to do and expected to do it without question. The introduction of policies via email, a sense of being overlooked, and low morale were all evident. According to ACAS, consultation is a realistic two-way process that assists in enhancing decisions and working relations. That was not the case in this situation, and this is why the new structure brought about resistance rather than stability [4].

In summary, the flat structure was more befitting Calmere House under Kirsten as it was consistent with the culture, size, and people-oriented manner of operation. The hierarchical structure better fitted Chaffinch Group as a larger business, but it only partially fitted Calmere House due to the inflexible manner in which it was implemented, which conflicted with the existing culture. It was not the structure itself that was the problem, but the ill-adaptation of the new structure to the manner of working that had made Calmere House successful.

AC 1.2 – Rational Approach to Strategy Formulation at Chaffinch Group

A strategic plan identifies how an organisation is going to deploy its financial, workforce, and technological resources to meet its objectives [3] [4]. In the case of Calmere House, which now belongs to Chaffinch Group, there is an evident necessity to have a strategic plan that would realign the company, recover staff morale, and rebuild the image of high-quality, personalised care.

Strategic planning begins with a sound self-assessment. This implies consideration of internal capabilities and weaknesses, as well as external opportunities and threats (Islam et al., 2021). For Calmere House, this would involve addressing excessive employee turnover, declining resident satisfaction, and the loss of the personal touch that used to make it stand out. It also implies identifying opportunities to improve services and reach sustainable growth.

The strategic goals of an organisation are supposed to determine how it organises, its market position, and its relationship with the people it serves [3]. For Calmere House, this translates to making the satisfaction of residents and the involvement of staff central to everything. Reintroducing personal elements — such as enabling residents to influence how their rooms are arranged — would go a long way toward restoring trust and reinforcing what makes the home distinctive. A differentiation strategy will provide Calmere House with a value proposition that is attractive to residents and their families while enabling it to compete effectively across the wider care industry.

Vertical integration is concerned with ensuring that day-to-day operations contribute to long-term objectives. For Calmere House, this means aligning care delivery, staff management, and financial planning so that all departments pursue the same outcome: better quality of care and higher occupancy rates. When teams are misaligned, they move in different directions, compromising consistency and development.

Horizontal integration is concerned with cross-functional teamwork. Fostering collaboration among care staff, HR, and management breaks down silos and enhances communication. In a care environment, connected working makes a genuine difference to both operational efficiency and the quality of care provided to residents.

Sustained strategic success requires maintaining objectives aligned with the fundamental services residents are seeking, while ensuring those services live up to expectations. When an organisation can adjust its strategy as market conditions change while remaining faithful to what made it stand out, it is well positioned to compete and grow in the long run [3] [4].

AC 1.3 – External Factors Impacting the Residential Care Industry

Negative Factor: Interest Rates and Inflation

Interest rates are a key determinant of the financial and operational choices available to Calmere House under Chaffinch Group. They influence the cost of borrowing for refurbishment, care equipment acquisition, and service pricing to residents. Increased interest rates make borrowing costly, which limits budgets for planned improvements and extended financial planning.

Chaffinch Group will need to monitor market movements closely. The ability to negotiate favourable loan terms and ensure that investments deliver real value will help Calmere House remain competitive and maintain the funds needed for the improvements residents and staff rely on [5].

Care providers are already being hit by inflation. For Calmere House, there is pressure on margins due to rising utility bills, staff wages, and care costs. It also affects residents and their families — if costs are passed on, some families may struggle to afford the level of care required.

To manage this, Calmere House must seek long-term agreements with suppliers, reduce unnecessary expenditure, and improve the efficiency of staff scheduling. It needs to remain value-focused — making operations leaner without affecting the quality of care. When done correctly, this both protects the financial health of the organisation and sustains quality service provision [5].

Positive Factor: Technology and Sustainability

The use of modern care technology is essential for enhancing service quality, safety, and efficiency at Calmere House. Electronic care management systems, automated reporting, and AI-assisted scheduling have the potential to ease administrative workloads and enhance the precision of resident monitoring. Cloud-based tools also support more coordinated care by enabling care teams to share information securely in real time.

Sustainability is an increasing concern that Chaffinch Group ought to address at Calmere House. Reducing waste, enhancing energy efficiency, and using sustainable materials in refurbishments are viable actions that will reduce operating costs in the long run. Achieving green building standards also builds the reputation of the care home, particularly with families and investors who value environmental responsibility.

These activities achieve the dual objective of environmental protection and increased financial efficiency over the long term [6].

Organisations that invest in these foundations are well placed to cope when the market changes. Failure by Calmere House to act will mean lagging behind competitors who have already taken steps in this direction.

AC 1.4 – Technology at Calmere House: Impact on Work and Wellbeing

Technology is transforming the way care is provided and how care teams operate at Calmere House. Chaffinch Group is committed to using digital tools across care provision and management — from AI-based care systems to sophisticated HR platforms — intended to enhance efficiency, facilitate growth, and ensure staff are not left behind [7].

Remote communication tools, automation, and digital care systems have enhanced the daily running of Calmere House. However, there are risks. Always-on staff may experience stress and burnout, which has a direct impact on performance and wellbeing. To address this, the organisation must implement wellness programmes, including digital detox breaks and flexible working hours, to ensure employees remain productive without putting their mental health at risk.

Automation of functions such as record-keeping and scheduling frees care staff to spend more time with residents. That is the true value — more face-to-face time results in better care and greater job satisfaction. On the other hand, new systems may lead to confusion, and if managed poorly, care may lose its personal touch. Open communication, regular training, and digital literacy programmes can help Chaffinch Group address this. When employees feel supported through the transition, they are more likely to engage with the changes rather than resist them.

AI-driven applications can enhance shift coordination, facilitate communication, and promote collaboration among care teams — all of which will strengthen commitment and a sense of shared mission. That said, the threat of digital overload exists. Excessive information flow through too many channels can be disheartening and lead to an overwhelmed workforce rather than an empowered one. Calmere House must respond by providing targeted training on time management and effective use of digital tools, ensuring that technology facilitates work rather than disrupting it.

Technology must not be used to complicate working life. Chaffinch Group should develop a culture of digital change that is accompanied by staff wellbeing — through structured e-learning, wellness programmes, and sustainable working practices that enable both professional growth and personal health. When Calmere House gets this balance right, it will be able to sustain high-quality care and retain a motivated, engaged workforce in the long run [8]. Otherwise, the tools that should support staff can become drivers of turnover.

AC 2.1 – Theories Explaining Problems Following the Takeover

Charles Handy's Culture Model

According to Charles Handy's model, there are four possible organisational culture types — Power, Role, Task, and Person — each representing a different style of leadership, decision-making, and relationship with employees. This is a helpful model for understanding how power and communication flow in an organisation, and it fits the changes that Calmere House has undergone [9].

Under Kirsten: Power Culture. Calmere House operated through a Power Culture before the Chaffinch Group takeover. Decision-making was centred on Kirsten, which provided the organisation with speed and a personal identity. In a small, family-run care home, this worked well. Kirsten was intimately involved in day-to-day running, and this closeness led to quality and compassionate care. The disadvantage was that when leadership changed, staff were left with no anchor to rely on. The culture encouraged responsiveness and a personal touch, but when that leader was removed, it exposed the organisation to significant vulnerability [9].

Elements of Task Culture were also present. Teamwork and collective responsibility were focal points — handover meetings and shared problem-solving were routine. Employees owned their roles, and cross-departmental coordination was high.

A Person Culture also operated under Kirsten. Employees were appreciated based on their capabilities, experience, and attributes. Their relationships with residents and management were strong, and they were motivated by the understanding that their contribution mattered.

Under Chaffinch Group: Role Culture. When Chaffinch Group acquired Calmere House, the culture shifted to a Role Culture — built on hierarchy, formal procedures, and standardised policies. While this created order and uniformity across multiple care homes, it curtailed the freedom and flexibility staff had previously enjoyed. This caused passivity among employees accustomed to a collaborative approach, reduced innovation, and lowered morale [9].

The Task Culture that had flourished under Kirsten also dwindled. Top-down instructions replaced team ownership and employee involvement, and the team spirit that characterised the home began to dissipate. The Person Culture was equally compromised — individual contributions were not as actively valued, and involvement and loyalty were consequently lost.

The SCARF Model

The SCARF model developed by David Rock explains why motivation decreased so drastically following the transition. It identifies five behavioural drivers in the workplace — Status, Certainty, Autonomy, Relatedness, and Fairness — and all five were negatively impacted [10].

Status was undermined as decision-making was centralised without employee involvement. Certainty was eroded by a lack of clarity about what the changes meant for individual roles and the organisation's direction. Autonomy decreased sharply, adding stress and leaving employees feeling disempowered. Relatedness was damaged as team connections loosened within a more rigid structure. And Fairness was compromised by perceptions of unequal and unjust treatment.

AC 2.2 – How Changes to Selection and Employee Voice Impacted Culture

The transition of Calmere House to the hierarchical model already present in Chaffinch Group would be very significant and needed to be approached with care. Employees had been accustomed to a participative leadership style in which Kirsten listened to and valued their opinions. Moving towards a more standardised mode of operation required clear communication about why the change was occurring and what benefits it was expected to produce.

The aim should have been to bring calm and predictability to care delivery without abandoning the compassion that Calmere House had always been known for. A better-integrated model can enhance coordination and accountability and assist in sustaining quality across departments. However, to ensure staff are behind it, Kath needed to be transparent about both the advantages and the challenges. Transparency generates trust — and without trust, such a transition will have poor uptake [11] [12].

Effective cultural and structural change cannot be controlled from the very top alone. Calmere House needed to establish a change coalition — a team of credible staff, professional carers, and supervisors capable of promoting the new model and influencing others. This should have involved long-standing employees whom their colleagues trusted. Such people bridge the gap between old and new ways of working, and their credibility reduces doubt and resistance. When respected staff members openly support a change, there is a much greater likelihood that others will follow [11] [12].

Employees who adapted to the new structure successfully could have been turned into internal ambassadors — mentoring colleagues and sharing positive experiences through team meetings or internal newsletters. These champions help create an environment where hesitant staff members feel encouraged rather than pressured. Peer-to-peer influence of this kind is often more effective than formal management communication.

Chaffinch Group also faced practical obstacles. The most likely sources of resistance were increased workload, reduced autonomy, and inadequate communication. These could be addressed through open feedback channels, flexibility where possible, and the recognition of effort and achievement. Small successes — improved care outcomes, positive resident feedback — can lift morale across the whole team and demonstrate that the change is working [11].

AC 2.3 – How Chaffinch Group Could Have Better Managed the Change

The move of Calmere House to Chaffinch Group's hierarchical model required very careful handling. Employees had been used to a participative leadership style under Kirsten. The shift to standardised operation needed to be communicated clearly — explaining why the change was happening and what advantages it would bring.

Structural and cultural change cannot succeed when driven exclusively from the top. Calmere House should have established a change coalition of credible staff and supervisors to promote the new model and reduce resistance. The involvement of long-standing employees, trusted by their peers, would have bridged the gap between the old and new ways of working [12].

A shared strategic plan — co-created rather than imposed — would have helped employees see how the change connected to their own growth and to the long-term success of Calmere House, not only to corporate targets. Making the plan a jointly owned roadmap, rather than a top-down decree, would have been advantageous in restoring morale and building buy-in.

Employees who adjusted well could have been used as internal change champions — mentoring others and sharing their experience. This peer influence tends to be more effective than formal management messaging in overcoming hesitancy.

Obstacles needed to be anticipated: increased workload, loss of autonomy, and communication failures were the most probable sources of resistance. Open feedback channels, flexibility where feasible, and the recognition of hard work could all have helped. Celebrating small successes in care practice would have reinforced the message that the change was delivering real benefits [11] [12].

The final stage was embedding the new model into the fabric of Calmere House — in policies, training programmes, and performance management. Unless the new structure is reflected in how people are treated, developed, and supported day to day, it will not succeed on paper alone.

AC 2.4 – Employee Experience of Change: Kubler-Ross Change Curve

The Change Curve was initially created by Elisabeth Kübler-Ross to describe how individuals respond to grief, but it has since proven useful in explaining how employees respond to organisational change. Applied to Calmere House, it traces the emotional journey of staff since the sale to Chaffinch Group and the transition to Kath's more directive leadership style [14] [15].

Shock and Denial: When the new management structure was introduced, employees were initially shocked and disoriented. They had become accustomed to the collegial, flexible, and personal way that Kirsten worked, and the magnitude of the change was difficult to absorb. This ambiguity produced opposition and a short-term decline in performance as employees struggled to understand how the change would affect their roles [15].

Anger: As the reality of the change took hold, frustration and resentment grew. Staff felt alienated by Kath's authoritarian style and the removal of employee voice from decision-making. Some were openly critical of the new bureaucratic culture; others disengaged silently. The restructuring appeared to offer no tangible benefits to those most affected by it.

Bargaining: At this stage, employees attempted to recover some influence — proposing compromises, arguing for retention of personalised care practices, or resisting full implementation of Chaffinch Group's standardised policies. These attempts made little headway as management remained focused on uniformity over flexibility.

Depression: When it became clear that the old culture was not returning, morale fell sharply. Employees were emotionally fatigued and increasingly disengaged. The absence of a positive atmosphere, increased workloads, and reduced sense of recognition left those who had previously felt proud and valued unsure about their future [15].

Acceptance: After a period, some employees began to accept that the change was here to stay and started adapting to the new systems and processes. However, this acceptance was not matched by the emotional attachment they had previously felt. Staff were adhering to the new way of working, but for many the sense of belonging that had defined Calmere House had not yet been restored.

Commitment: A smaller number of employees moved beyond acceptance and began to see genuine possibilities in the new structure. These individuals became change champions whose participation helped stabilise performance and encourage others. They represent the foundation for restoring a positive culture within the new model. However, this group remained in the minority, and broader commitment will only be achieved if leadership continues to work at rebuilding trust across the team.

AC 2.5 – Factors Impacting Employee Wellbeing at Calmere House

Wellbeing must remain a priority at Calmere House, particularly following the change of ownership to Chaffinch Group. Wellbeing encompasses physical, mental, and emotional health, and all three are necessary to provide high-quality care. The CIPD Good Work Index identifies wellbeing as central to job quality, with a direct influence on organisational performance [17]. Research consistently shows that wellbeing investment enhances engagement, productivity, and workforce efficiency — precisely the areas that require attention following the recent changes [16].

Factor 1: Employee Engagement and Recognition

The relationship between employee wellbeing, engagement, and job satisfaction is well established. Under Kirsten, employees felt valued, trusted, and connected to their work. That sense of belonging has been undermined by the move to a hierarchical and more autocratic leadership style under Chaffinch Group.

Practices that rebuild psychological safety and mutual trust can begin to restore engagement at Calmere House. Recognition in particular develops self-esteem, resilience, and commitment, and reduces stress, absenteeism, and turnover [17]. Opening up communication between Kath, senior management, and the wider team would go a long way toward rebuilding confidence. Staff contributions must be recognised not as an occasional event but as an integral part of organisational life. When individuals feel their work matters, they regain a sense of purpose and community.

Factor 2: Work-Life Balance and Workload

The risks of burnout and fatigue are inherent in care settings and are only heightened during periods of change. Providing flexibility with work schedules, ensuring adequate rest, and distributing workloads fairly will help staff remain healthy. Respecting personal boundaries is not only good practice — it is essential to individual wellbeing and to the sustainability of the organisation.

Supported staff provide higher-quality care, remain committed, and are more resilient. Investment in wellbeing also improves productivity, enhances reputation, and reduces recruitment and training costs.

Conversely, the absence of wellbeing support increases the risk of absenteeism, poor performance, and work-related stress — all of which are detrimental to the quality of care and to resident satisfaction [16]. This is not an area where Calmere House can afford to cut corners.

AC 3.1 – People Practice Roles and the Retention Stage of the Employee Lifecycle

Under Kirsten, recruitment at Calmere House was values-based. It aimed to identify individuals who shared the home's ethos of care, compassion, and teamwork — not only those with the right qualifications. Staff were consulted during the selection process, which helped ensure that new employees were a good cultural fit and could maintain the standards of resident care.

Following the Chaffinch Group takeover, recruitment was centralised and made bureaucratic. Employee involvement was eliminated and gaps were filled through agencies. The outcome was that new hires were a poor fit for the home's culture, which damaged morale. This underlines the importance of inclusive, values-based recruitment, which brings a more diverse and qualified pool of candidates and gives everyone a fair opportunity [18] [21].

Kirsten's induction approach was personal and meaningful. New staff were given an understanding of the home's history and culture, creating a sense of belonging and emotional connection from the outset. This strategy helped people settle quickly and invest in their roles.

Chaffinch Group replaced this with a standardised, impersonal process — largely delivered via corporate policy emails. It did little to help new employees identify with the mission of the organisation, and early engagement consequently declined. An effective induction process is crucial to building commitment and helping people connect with the culture they are joining [19].

Kirsten's leadership style promoted continuous development. Open communication and regular check-ins made employees feel valued and encouraged to grow. Following the transition, professional development opportunities diminished and communication became restricted by the new hierarchy. This deterred motivation and job satisfaction. In a care environment, ongoing training, coaching, and recognition are not extras — they are central to quality and to staff retention.

One of the most significant moments in the employee lifecycle of Calmere House staff was the sale to Chaffinch Group. Although Kirsten informed employees about the sale and her reasons for it, they did not anticipate the scale of the cultural and structural change that followed. This transition was poorly managed, contributing to dissatisfaction, high turnover, and a weakened employer brand [21].

AC 3.2 – How People Practices Could Help Fill 100% of Resident Rooms

Strategic people practices — organisational development, learning and development, and human resources — must collaborate if an organisation is to perform well. This was the case at Calmere House under Kirsten. HR practices were co-ordinated with organisational objectives through open communication, employee involvement, and shared decision-making. The result was a robust culture of engagement, high performance, and long-term stability. When HR strategies align with business goals and cross-departmental co-operation is encouraged, organisations are better positioned to enhance performance and achieve sustainable growth [22].

Horizontal integration — ensuring co-ordination between functions and teams — came naturally under Kirsten's consultative leadership. Staff meetings and one-to-one conversations gave employees the opportunity to share their experience and suggest improvements to care delivery. Management and staff worked closely together, and people practices were well connected to business goals.

That teamwork collapsed under Chaffinch Group. Collaboration was replaced by bureaucratic structure, communication between departments decreased, and employees were excluded from decision-making. The effects on interaction and performance were significant. Genuine business partnering between HR and care teams is needed to ensure that recruitment, performance management, and development strategies remain aligned with what the organisation actually requires [23].

Vertical integration — connecting what workers do day to day with the overall performance of the organisation — was achieved under Kirsten through shared values and a clear understanding of individual roles and resident wellbeing. Employees understood the part they played in the home's success, and this knowledge motivated and engaged them.

Under Chaffinch Group's autocratic approach, employees became disconnected from the organisational vision, resulting in a loss of motivation, turnover, and absenteeism. Vertical integration means ensuring that HR practices are directly linked to performance — through engagement initiatives, recognition, and career development pathways. When employees feel appreciated and understand that their contribution matters, they perform better and bring more to the role [24].

Strategic synergy — the combined effect of horizontal and vertical integration working together — is what occurs when people management is correlated with both operational delivery and long-term strategic objectives. This was the reality at Calmere House under Kirsten, fuelled by co-operation, open communication, and investment in professional development. Restoring this synergy requires realigning HR practices — training, recognition, and employee voice programmes — to the broader objectives of the organisation. This is how Calmere House rebuilds trust, re-engages its workforce, and increases performance. When business priorities and people strategies pull in the same direction, employees are enabled to contribute to both short- and long-term outcomes.

AC 3.3 – Consulting and Engaging Employees to Understand Increased Turnover

The role of HR has evolved from a primarily administrative function to a strategic one that directly shapes organisational success. Under Kirsten, HR practices were embedded in daily operations — employee engagement, communication, and performance management were all aligned with business goals. This produced a culture of motivation, teamwork, and consistency. Following the takeover by Chaffinch Group, the reduced focus on people weakened engagement and performance. To sustain the transition and restore stability, HR must remain alert to the changing demands of the organisation and lead the integration of people strategies with business direction [23].

Effective communication enables HR to remain in touch with the real needs of the organisation. At Calmere House, Kirsten achieved this through staff meetings and individual check-ins, ensuring that people practices were closely aligned with care goals. Her participative approach built trust, fostered co-operation, and motivated performance. By contrast, Kath's autocratic approach limited communication and alienated staff.

Ongoing engagement with stakeholders helps HR anticipate expectations and align initiatives with business objectives [22]. Stakeholder mapping is a valuable tool in this context — it enables HR to identify key decision-makers, prioritise needs, and ensure programmes are connected to current and emerging goals. Without this, HR risks operating in isolation from the people it is meant to serve.

A well-designed needs analysis gives HR the evidence required to understand both employee and organisational needs. For Calmere House, this would have revealed how emotionally connected employees were to the former culture and where their interests in the new structure lay. Techniques such as interviews, surveys, and focus groups allow HR to engage with workforce expectations and identify behavioural trends. Based on this evidence, action plans can be developed to enhance individual and collective performance. This is about using information to make decisions rather than assumptions — particularly important during periods of major change.

Regular evaluation and feedback are essential to keeping HR programmes effective. Chaffinch Group lacked this kind of ongoing review, which contributed to the deterioration of morale and performance. When HR reviews its initiatives regularly, it can modify policies, strengthen engagement, and build organisational resilience over the long term.

Without consistent evaluation, HR practices become stagnant and disconnected from the reality of the workforce. Continuous assessment keeps people strategies agile and fit for purpose in changing conditions [23]. This is not an isolated task — it should be an integral part of how HR operates.