Final answer:
The memo sent by the vice president of operations to the operations personnel at Delta Manufacturing represents downward communication. It aims to emphasize the importance of productivity in affecting the company's financial health. Enhancing human capital and efficient resource utilization can lead to increased productivity and profits, as exemplified by a messenger company benefiting from lower gasoline prices.
Step-by-step explanation:
When the vice president of operations at Delta Manufacturing sends a memo to all operations personnel about the importance of increasing productivity and its effect on the company's bottom line, this is an example of downward communication. This type of communication occurs when information flows from higher levels of the organizational hierarchy to lower levels. It is a way for management to convey messages, expectations, and policies to employees.
Increased productivity can be achieved through efficient use of resources and skilled application of the factors of production. Investing in human capital—the education and skills of the workforce—is essential for improving productivity. A more qualified and competent workforce contributes significantly to the success of a business as well as the broader economy.
For instance, a messenger company that experiences a drop in gasoline prices, which is a major cost, can operate more efficiently. The company can then expand its service area and supply due to lower operating costs, which directly correlates to higher profits and increased productivity.