Rachel Withers

Comm 250,
Final Project,
December 12, 2014

Melaleuca: The wellness Company

Melaleuca is a life focused company. Their goal is not only to help people live healthier
lives but to also help those people succeed in all areas of their life. Their mission statement says
it clearly, To enhance the lives of those we touch by helping people reach their goals. CEO
Frank Vandersloot said Melaleuca is a company that focuses on helping people live a more wellrounded happier kind of life. Melaleuca prides themselves in making and selling safer for your
home products, be it house cleaner to dishwashing detergent, or makeup to lotion, or laundry
detergent to essential vitamins. Their goal is to be the best. They focus on the latest technology
so as to help their customers to truly receive the health benefits they need.

There are several parts to Melaleuca, the customer, business directors and the employees.
As an employee you cannot be part of the business development part of Melaleuca. Being a
business developer for Melaleuca means you are a regular customer but you help other people
become customers and then those customers help other people become customers. Melaleuca
pays zero dollars in advertising. They believe that their products sale themselves and the people
who use them will want other people to use them as well. Melaleuca is different from other
triangle business organizations in that if someone starts a business they can be potentially better
than the business customer who signed them on. It is a place where equal opportunity takes
precedent. All those involved be it employees or marketing executives are expected to work hard.
Every customer for Melaleuca makes a commitment of buying products that add up to at least 35
product points each month. Each product is assigned a certain point value. This lets Melaleuca

keep their products fresh knowing that they will have consistent sales every month. This point
system helps Melaleuca to continually bring in profits while providing their customers with fresh
products.

The structure and flow at Melaleuca is very much run like an LDS Mission is. Every
Employee is expected to meet with their supervisor monthly to set goals and to analyze how they
are progressing. Melaleuca is continually encouraging their employees to advance in the
company. Whenever there are job listings Melaleuca employees get to see them first so they will
have the opportunity to progress. Melaleuca treats their employees very good giving every
employee no matter their job an $80 product check every month to purchase and test company
products. For the employees who work the end of the month shifts which last until midnight,
Melaleuca gives a $2 raise for those hours they work. The environment at Melaleuca can be very
intense with many sales being made at the end of each month. Because of these intense moments
supervisors create incentives and games to keep the employees calm and having fun.

The data I used for my study was easy to gather because I am one of those employees at
Melaleuca. I have interviews with my supervisor on a regular basis and all company meetings are
informational. I talked to other employees and my supervisor in a casual setting whenever there
was time at work which took me about 7 hours in all. As I am an employee in sales whenever
there was not a call I studied Melaleuca, their products, plans, goals, new products, new ways of
changing the culture, etc. This of course took me many hours because it was something that I did
as I was working. An estimate of the hours would be the hours I spent working there every
month end this semester, which is about 24 hours every month end.

The Classical theory is the idea that managers or leaders have that to make their
organizations more successful they divide the labor into different duties. Those duties are simple
but are essential in running the organization. Education-portal.com when studying the Classical
Management Theory says that this is the theory that factors managers use to structure their
business in a more efficient and productive way. Their workers will only have to do their job on
the conveyer belt or line of duty. The structure of Melaleuca follow the classical management
theory because they are continually studying how to be more efficient and productive in their
offices.

There are specific duties for each job title at Melaleuca. As a sales associate for example I
do not worry how the warehouse does their job or how the CIT creates their software. I focus on
my duties and then usually only reporting to my supervisor who reports to hers and so on. The
supervisors in turn report to us messages from their supervisors and managers. The first couple
of months at Melaleuca is dedicated to learning the procedures for the specific line of work the
employee has been hired under. Different from other classical environments are the relationships
that take place at Melaleuca. Friends are encouraged. Supervisors laugh with subordinates. Sales
associates speak with higher up managers and so forth. There is always order and when that
order goes away we know how to find it again be it through procedures or our supervisors.

In section 2.1 page 4 of the reading, Organizational Theory, Perspectives on

Communication from Communication in organizations 2nd ED. Dalmer Fisher West Publishing
it states, In classically run organizations, communication derives its character from certain
organizational characteristics. Two of these are formalization and centralization. A formalized

organization is one in which job requirements are explicit and written. A centralized organization
is one in which decisions tend to be made at or near the top. Those who work in formalized,
centralized organizations tend to engage in relatively little oral, lateral, and unscheduled
communication, and, as organizations become more formalized and centralized, communication
between persons in different departments tends to decrease. In other words, communication in a
classical organization is less spontaneous than that in a less formalized, more decentralized
organization.

Does the org. sense and adapt to its environment? Melaleuca does its best to adapt to
changes in culture and health needs throughout the world. Frank Vandersloot said, Our vision
was to help the average person get ahead financiallyWe partnered with many doctors and
scientists throughout the world to make absolutely sure we are leading the world in the science of
wellness. By focusing on current health needs Melaleuca has been able to adapt to modern
health needs for this day and age. I do not see any changes that need to take place as of yet in
how modernized Melaleuca is because they not only plan for the present but for the future as
well. Their new campus building has the capacity to hold 4,000 employees. Right now Melaleuca
only has 2,000 employees. Melaleuca has a campus with only 4 buildings but their plan is to fill
the whole campus with more buildings as the company expands. Melaleuca even has a virtual
map of what their future campus should look like.

In the class reading 3.1, Organizational Communication Barriers it says that there are
barriers to hierarchical and lateral flow which come in how messages are sent. The reading says
that Downward communication is the flow of information from superiors to subordinates in

any organizational structure. Upwards communication is just the opposite with the subordinates
communication with their supervisors. There can be barriers to upward or downward
communication because as it goes down less and less of the message is communicated until the
the employees at the lower end of the organization receive only part of the message. Upward
communication can have barriers when the subordinates try to make their bad news sound less
bad.

On October 18, 2014, Brother Embree said that there are three major communication
barriers within an organization. The first is the individuals reluctance to see the others point of
view, the second is hesitancy of lower status members to communicate information upward and
the third is the tendency to be influenced by pressures outside of the organization (war or public
protest) to make adequate internal communication difficult to achieve. Many different barriers
usually occur at the same time because one fires up others. Even easiness in a job can be a
communication barrier because complacency sets in with the satisfaction of new role as though it
may be boring and not fulfilling.

Melaleuca has an innovative way to breaking down these communication barriers while
also practicing, MBWA, Managing By Walking Around. Frank Vandersloot, CEO and Founder of
Melaleuca, said at the yearly meeting this last November that he wants innovative ideas that can
help Melaleuca keep moving forward. He said those good ideas are not in the management a lot
of times but rather with those who are on the floor. He said he is willing to break all management
barriers to get those good ideas. He will fly those people down to Utah, take them to a Jazz
game, and pay for their night in a fancy hotel. Frank will be with that person the whole way so he

can pick that employees brain to get the best ideas from him. He wants the vision and innovation
of fresh employees who have not been filled with upper level procedures and trainings. Pretty
cool right?

In class on October 14, 2014 Brother Embree said that one of the reasons an organization
acts to create its own culture is to help motivate their employees. The Culture is like an unwritten
set of rules while the policies are the written rules. The culture can be more powerful than the
policies because it becomes part of who each employee is. Any group of people who share a
common identity will begin to form their personal culture. We are all part of multiple cultures
and sub-cultures. If you want to understand people then you have to understand their culture
because these things in their culture are part of who they are. To discover what the culture is in
any given situation the best thing to do would be to set your biases down and sit back and
observe. Stories of heroes within the culture help us to have courage to do hard things just like
they did. Leaders are the guardians and shapers of culture. They protect and shape the culture in
positive ways. Cultures can be changed but it will not be overnight it takes time.

BYU-Idahos leaders are continually working to create a culture of Christ. Many times
the biggest factor people have in not accepting the Gospel is their culture. Even if the leaders
take stuff away out of the culture, culture can help people stay together. Cultures are powerful in
that once cultures are established they drive themselves. Successful organizations have
successful cultures. A successful culture would be one in which there are no holds when it comes
to communication and receiving feedback. It would be to where everyone has the same goal and
performs at their top level of excellence.

Melaleuca does something unique in that they make their policies part of their culture.
They make it the cool thing to follow the policies by making games that help each employee
want to measure up to company standards. There is a sense of common identity at Melaleuca.
The shared goal is to help people. When new employees get bogged down with company policies
supervisors help them set small achievable goals to genuinely help the customers while meeting
all the company criteria.

The Melaleuca culture is a fast paced, friendly, high energetic environment where every
supervisor does their best to help their subordinates succeed so as to help the customers succeed.
The culture of Melaleuca works for the organization in that the rewards system keeps all
employees on their toes. Every employee feels good when they perform well because they are
helping the people around them. Then the employee gets little rewards such as products like
lotion or health care products. Every month each employee will meet with their supervisor. These
meetings are not just to practice and implement principles but to get to know the employee as
well. As the employee feels that the supervisor really cares they feel empowered to care as well
for not only the supervisor but for the other employees and the customers they are serving.
Something new that Melaleuca is trying is helping their employees become even more health
conscious. In their new facility they have tread mill/eleptical rooms for team meetings or for
taking a breather for a few minutes. Employees can raise up their heart beat and stay more active
by taking little breaks throughout the day to exercise

There are a few communication barriers at Melaleuca one of these being the time spent
on the phones leaves the sale reps with little time for communicating. The time they do have for

communication is often when the customers are on hold and they are asking their supervisors for
information the customer on the line needs. Another communication barrier is there are a lot of
employees at Melaleuca and there are many supervisors we speak and report to. Frank
Vandersloot is trying to take out all communication barriers within the organization and has
designed the layout of the new Melaleuca building with all the vice presidents offices in the
middle of the building with their respective departments going out from there.

The supervisors, managers, directors and Presidents at Melaleuca lead by example. Most
of them have worked up the chain of command and know the responsibilities of each position.
For example when there are not enough employees on the phone to help customers needing to
place an order, supervisors will get on the phones and work side by side their subordinates.
Leaders attempt to motivate their subordinates at Melaleuca by making work fun. They create
competitions that will motivate and excite employees to work harder. These competitions are
always to enhance employees motivation and self-esteem. Even when employees do not win
they still feel excited because of the high energy the competition brought. At Melaleuca no
matter what your job or how much you work every year employees are rewarded for their length
of service. If an employee works for 5 years they receive a $5,000 bonus, at 10 years they
receive a $10,000 bonus, at 15 years they receive a $15,000 bonus, and at 20 years they receive a
$20,000 bonus.

In class on October 7, 2014 Brother Embree explained the difference between an opensystem and a closed-system. An open system is dynamic because it brings in what it needs and
gets rid of what it doesnt want or need. An open-system is like a river that continually flows
continually cleaning out all impurities within it. In a Closed-System nothing leaves and nothing

new comes out. Because there is no newness ideas are also closed. A closed system is like the
Dead Sea. Water that flows into the Dead Sea remains to stagnate and sit. Open-systems lead the
market because they sense what is needed and what is possible. BYU-Idaho is an open-system
because they have always brought in a president from outside of BYU-Idaho. Because of this
each President has helped BYU-Idaho progress in different ways. The more open a system is, or
even a person, the healthier and adaptable it is. Stagnation happens in businesses or peoples
lives when they allow themselves to stay in their comfort zones. In an organization there is a
natural law that requires change or the organization will most likely fail. Organizations have to
adapt or die.

Melaleuca is an open-system because they continually bring in what they need and
continually analyze good and bad techniques they are using. Melaleuca takes care to sense
changes in the market and desires of customer, because of that they are continually researching
how they can help their customers needs in the best way possible. One example of Melaleuca
being an open system that I saw firsthand was my first week at Melaleuca I met the head
manager of the CIT department. He was newly hired from the south and had years of experience
working for another company. He has raised the quality of the work the CIT department puts
forth because of his fresh ideas. Melaleuca strengthens themselves by continually training and
building their current employees. Melaleuca also strengthens the community. When they built
their beautiful new building in Idaho Falls, Melaleuca signed a $2,000,000 contract with an
Idaho Falls window company rather than hiring some other company from out of state or Boise.
Melaleuca provides the 4th of July fireworks every year in Idaho Falls as well as a Baseball field.

The Psychology Notes HQ says Koelgergs three stages of development are stages that
individuals go through as well as organizations in order to make judgments and decisions. There
are two levels in each stage. The first stage is called pre-conventional. It is
obedience/punishment and Self-interest. The first is how infants think where there is no
difference between doing the right thing and trying to avoid punishment. The second is the selfinterest stage, toddler/preschool age where the persons interest is shifted from punishment to
what is the reward. The person asks what is in it for me. The second stage is called conventional.
It is Conformity/ interpersonal accord and authority/social order. This is the stage that most
school aged children are in where effort is made to secure approval and the purpose of mortality
is maintaining social order through fixed rules. The third stage is post-conventional. It is where
teens and adults fall. Decision are made first based on social contract and finally on universal
principles. The first refers to how each person is benefited and how laws are not always moral.
The second level is when decisions are based solely on principle rather than what the social order
dictates.

Melaleuca is in the third stage of development, universal principles. They believe that
they are bettering the world and are leading on their own terms through their dedication to
principle. An example of this is their new campus is a completely smoking free campus. Frank
Vandersloot said he understands that smoking is so hard to quick. He said Melaleuca wants to
help their employees quit smoking so they have made their campus a smoke free campus. They
are dedicated to helping their people succeed in whatever way possible.

Melaleuca deals with conflict through their rewards system and their variety of phone
lines. Melaleuca has several lines for their customers that solve specific needs of customers.

These lines help customers to cancel their membership, get refunds, reshipments, receive online
help, receive customer service, enroll new customers and help customers place orders. The
different phone lines help deal with conflict because they help a customer get specialized
attention immediately when they need it. There are immediate supervisors over each small group
and when there is a problem or a sales rep does not know the answer to a question the
supervisors are right there to help. Melaleuca also has back up plans for when things go wrong.
For example when their online system fails they immediately give hand order forms to all sale
reps. These forms are then used to place hand orders rather than through the Melaleuca system.

The structure at Melaleuca is very organized because they are continually working to
improve and are constantly applying new principles. It is a very organized system. But to
improve the performance of employees even more I would teach more principle and love to each
employee so they work not to get graded but out of love for the customers. I would highlight
stories of customers and employees who used certain products to help us have more testimonials
that are visible. I would also have employees tour different parts of the facility at different times
during the year so they all have a feel for how the facility is doing. The online system at
Melaleuca is good but there are malfunctions when too many customers are calling in or are
online. I would enhance the networks ability to receive more orders at the same time.

Education-portal.com in its article, The Hawthorne Effect: The study of Employee

Productivity, says that studies have shown that employees act differently when they are being
watched or when there is a manager nearby. Melaleuca understands and applies this principle
especially in there sales calls. The Quality Development department of Melaleuca has the sole

job of making sure the employees are continually working to improve. To do that they pick
random calls and grade them. Quality Development listens to make sure that all the phone
criteria is being met and then the listen for how well the customer was treated. Because of this
Melaleuca employees know that any time they are on the line their performance can be graded so
they try to do their best in every call. The employees manager is also sitting next to each sales
team. The employee sits with his or her coworkers and they can hear each other. Melaleuca also
has the teams sit together so that the coworkers can visit when there are no calls. This puts the
employees in a good mood for when the customers call in. The customers can hear the
employees smiling across the phone.

I have learned this semester in class and at Melaleuca that people can be made to act up
to their part. The most powerful way to get good results from employees is to have a system that
is well organized and then to build your employees and believe in them and their abilities.