Final answer:
HR approaches to increase productivity involve investment in human capital, using more physical capital, and evaluating supervisory styles. Productivity can also be measured by broader economic contributions and profitability, not just output per hour.
Step-by-step explanation:
Human Resource (HR) approaches to improve productivity and reduce unit labor costs include a variety of strategies. One method is investing in human capital, such as the education and skills of the labor force which leads to a more qualified, competent, and motivated workforce. This advancement in human capital increases the productive capabilities of employees.
Additionally, to counteract union demands for higher wages, firms may modify their production methodology to involve more physical capital and less labor, which can result in increased labor productivity. Firms may also focus on labor productivity, defined as the value each worker creates per unit of input, as a measure of efficiency and an indicator of economic growth. Furthermore, HR can look into different supervisory styles and workforce interactions that may impact productivity positively or negatively.
Besides measuring productivity by the amount produced per hour worked, other metrics include the analysis of the broader economic contributions made by workers to the circular flow of economic activity, and the overall profitability and cost efficiency within the company. Thus, the link labeled "Productivity and Costs" that provides a wide range of data on productivity, labor costs, and profits across the business sector can be a valuable resource for firms seeking to optimize these metrics.