Luccent Layoff

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One of the most important parts of any company is the interior organization. Without a solid organization on the interior, there will be no chance for the cooperation to face the general and task environments. In order for the organization to remain solid there must be managers and supervisors who put trust into their employees but at the same time also make sure that the work that they produce is not only satisfactory but also legitimate. Major scrutiny of cooperation's employees usually takes place when there is money being lost due to the situation or when the company as a whole has forecasted or experienced financial challenges.

The article I chose to use deals with Lucent Technologies Inc., and making a managerial decision after being notified about a possible fraud. Lucent Technologies fired a physicist who worked at their Bell Labs division, saying that he had fabricated and falsified numerous research results in the past four years. Several months ago they were informed that they might have a conflict on their hands with the reportings found by Jan Hendrick Schon. The company decided that they would investigate the matters using an outside expert. Schon was a thirty-two year old physicist who had authored more then twenty high profile papers related to a new kind of semiconductors and transistors. The cooperation has been suffering nine-straight losing quarters, and through it all Jan Schon was the only bright spot for the company, which is facing even worse financial problems in the months to come. Lucent will be laying off 50,000 employees, although the Bell Labs division only makes up 1% of Lucent's budget, the firing of Schon was immanent because all of the questions raised about Schon's finding have been proved as fabricated.

This is a perfect example of self examination amongst a cooperation, where the managers are faced with a problem and come through with a definitive decision that will not only save the company a small amount of money, it will also save the company embarrassment and possible lawsuits for falsified information. Through an investigation the company was able to find the problem and resolve it. The committee was made up of four independent physicists, which accused Schon of sixteen instances of scientific misconduct between 18 and 001, including some instances of data fabrication. After his release from Lucent, the company has been doing everything in its power to put space between itself and Schon's findings and publishings. Through the investigation and it's findings Lucent was able to make a bound decision because it new the course of their action would only benefit the company.

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