Analysis of the Case of Avarind Eye Hospital

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Aravind Eye Hospital presents a case of an organization that has successfully combined business principles and social objectives to improve people's welfare and health. The business model at Aravind is therefore characterized by an established a large volume, high quality, and financially sustainable cataract surgery programme that depends on highly trained and motivated staff to achieve the organizational objectives. The basis of the organizational structure is aimed at managing challenges that are associated with the extension of eye care services to wider population through the development and management of other resources such as supplies and equipment, infrastructure, and involvement of communities. The purpose of this essay is to analyze the case of Aravind Eye Hospital (AEH) with the aim of establishing the management theory that characterizes the Organization.

Management Theory at Aravind Eye Hospital

The basic principles that characterize the organization include replicating the common strategy into foreign countries while building local capacities, provision of affordable services, sustainable and efficient management of resources, and enhancing access to services through information and communication technology (ICT). Furthermore, the Organization's operations are also based on the bottom of the pyramid (BOP) philosophy that seeks to offer services to a majority of the population that is poor in the society. Through BOP, Aravind is able to able to utilize the economies of scale to offer the best services to both the poor and rich in the society. The adopted management theory enabled AEH to streamline workflow, improve efficiency, and elimination of bureaucratic and overly processes that hamper productivity.

The Organizational Structure at Aravind Eye Hospital

The organizational structure characterizing the case at Aravind is a divisional business management design. A divisional organizational structure refers to an instance in which the organization is divided based on the locations, market, and service groups. The case of AEH shows that the organization is headed by the Govel Trust headed by Dr. V (Founder) who is assisted by two joint directors. The organization is divided into various hospitals and clinics that are located in different parts of India as well as in other regions of the world such as Africa, South America, and others. Consequently, the AEH's organizational structure is best described by divisional structural units given the objective of the hospital to implement a global business model with the aim of providing standard and similar type of eye care in all the locations of its operations. The divisional management theory is also espoused in the AEH's model through the existence of various clinics that are headed by medical officers in the various parts of the country. Furthermore, the case of Avarind is characterized by transferability of chain of knowledge due to a large population that require high quality and affordable eye services in various parts of the world. The divisional structure of Avarind is not only manifested in the geographical presence of the organization but also in the diversification into the products and services that offered to the clients. For instance, AEH has diversified its services to address the needs of in the divisions such as cafeteria, pediatric care, and optical services.

January 19, 2024




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