Why has the traditional model been replaced by the modern model of human resources? The answer is because the environment of the hospitality industry is changing dramatically; organizations that cannot or will not make the transition to the new model are finding themselves unable to compete effectively. This is clearly seen by the challenges that hospitality firms currently face. When reading the following challenges, examine the values of the two models in Table 1.1 and decide which would be of most use in meeting each respective challenge.