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The following essay will be discussing how the Aravind Eye Hospital boosted its efficiency from two to seven times followed up by discussing the impact of applying McDonaldization to Aravind Eye Hospital and its leadership by Dr. Govindappa Venkataswamy. This essay will first begin by introducing the Aravind Eye Hospital and will then explain McDonaldization and will look into how McDonaldization helped the growth and success of Aravind. Aravind Eye HospitalThe Aravind Eye Hospital is located at Madurai, India and was first found by Dr. Venkataswamy in 1976 with the help of his family with only 20 beds. The Aravind Eye Hospital was later known as one of the biggest and most productive eye care hospitals in the world by 1992 with 1,224 beds (Rangan, 2009). This shows the leadership skills of Dr. Venkataswamy. Leadership is the ability to lead people and/or organizations and Dr. Venkataswamy had all the leadership qualities and managed to perfectly perform all the aspects of McDonaldization in the medical field.McDonaldization consists of 4 main aspects which are; Efficiency, Calculability, Predictability, and Control.
Aravind system is cost-effective, high quality and high volume (Natchiar, G 1994). The Aravind Eye hospital offers free service to all of their patients, treating them free of charge. This includes medication, food, and surgeries. Aravind runs as patients who can afford to pay the regular price of treatments to cover the cost of those who can’t afford the treatments. Efficiency means reaching the results with the least amount of cost. (Ritzer, G 2015) This means finding a process where the least amount of effort or cost is put, yet still end rapidly on a specific end.
An example of Aravind’s efficiency is performing only a 60% volume of surgeries done in the UK but in one-hundredth the cost (Krishnan, 2015). At Aravind there is a high rate of outgoing surgeries and due to the high number of patients in need of surgery doctors need to use their time efficiently and this occurs as a surgery is being done nurses prepare the next patient on the next bed and having everything sterilized and ready so when the surgery is done the doctor can turn and operate on the next patient while nurses finish up the previous surgery by, for example, stitching up the patient and moving him to next room. Every day, surgeries are planned in advance. this means the number of surgeons and nurses needed alongside the number of surgical equipment needed are also planned to make sure all patients are being treated with the highest efficiency possible (Natchiar G, 2008). Calculability means being capable of calculating the inputs and outputs.
For example the amount a process will cost compared to what it produces. An example of this in Aravind hospital was producing lenses that in rich countries cost about $200 with only $5 so that it would be affordable for all patients (Narendran K. 2017). Aravind was the first hospital in India to manufacture lenses and make them affordable for patients which at first were imported from western countries as there was no production of lenses in the home country. These imported lenses cost about $200 which was not affordable in most countries nor for all patients of Aravind considering the fact that about 60% of them were from the poorer side of the community. So, Aravind founders decided to come up with they own method for manufacturing lenses which resulted in the production at $5 a piece. Predictability means being able to organize the process and being able to guarantee a regular product and outcome. Aravind Eye hospital network offers free diagnosis and surgery and accommodation. they provide free/low-cost eye treatment to about 45% of their outpatients and 65% of the patients undergoing surgeries. Although the profit for this Hospital mostly comes from the sales of their ophthalmic products i.e the lenses they produce, and their rich patients who pay for the surgery and to receive more amenities. Going more in detail on their profit, it is known that about 60% of the patients of Aravind hospital are treated free (out of over 1m patients) and still this business is highly profitable, and that is due to a large number of rich patients (40%). But this not only covers their average cost of operation per individual, it also makes surplus funds that cover their growth and their expansion cost (Rangan, 2007). A doctor at the Aravind Eye hospital performs about an average of 2000 surgeries annually even though the national average is just 220, which means more experience and with such an experience due to this high level of performance they have developed art techniques, therefore, are an excellent match for the facility. The control means adapting to changes to achieve the goal.
An example of this in the case of Aravind is offering full training to villagers so that they would Aravind’s next doctors. At Aravind, not only patients get the free treatment they also are given food and even a return transport. The priority of this eye facility was for the human welfare which is why they established this system of Aravind to provide free eye service to poor people and a very low price for the rest of the people (Ravilla D 2009). The Aravind has been able to maintain a standard quality for the services. Aravind also provides proper training to recruited people from the villages. At the time being, Aravind is exporting their lenses to 85 countries across the whole world. Aravind has been able to devise a system of not only delivering high quality and quantity but also reproducible. Conclusion and discussionMcdonaldization have helped millions of businesses all around the world as it had helped Aravind Eye Hospital.
As seen in this essay, McDonaldization and Dr.Venkataswamy’s leadership were one of the two main reasons why the efficiency of Aravind was boosted. But one thing to consider is, “what if such a boost in efficiency affects other factors of the business”. As an example, Doctors performing a surgery while nurses are preparing the next patient on the next bed, so when the doctor had finished his first operation, then he can jump to the next patient and leave the surgery’s finish-ups to the nurses e.g. stitching up the patient. Yes, this gives a higher rate of patients being treated but can also mean less quality of operation as doctors get tired after hours of surgery and might not have the same focus as they did on the first few hours. However, being able to apply all the aspects of McDonaldization to the business, Dr. Venkataswamy was able to run Aravind even with the high number of patients being treated free of charge, and this is how Aravind was able to boost its efficiency from 2 to seven times.
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