Study On The Human Resource Efficiency Of Construction Enterprises Based On SFA

Since the reform and opening up, China’s construction industry has a rapid development and become an important pillar industry of the national economy. As a typical labor-intensive industries, human resources are the most basic, crucial and malleable resource for the construction enterprises. At present, construction enterprises are facing the problem of low personnel quality and the talent shortage of high qualified compound, so the role of human resources is mainly reflected by human resource efficiency. Human resource management which is in order to improve efficiency as the core has increasingly become the focus work of construction enterprises. Based on this background, the study takes the efficiency theory and human capital theory as the theoretical foundation, employs Stochastic Frontier Analysis (SFA) in Battese&Coelli (1995) model to assess the human resource efficiency of construction enterprises and analysis the influencing factors. Most importantly, this research hopes to provide reference for construction enterprises to enhance the human resource efficiency.In the empirical research, this study builds a stochastic frontier production function and a technical inefficiency function to predict the human resource efficiency by Frontier4.1, using panel data for14construction enterprise listed on the SSE covering the years2009to2013. The empirical findings indicate that the SFA parameter estimation results are good and the model is reasonable. The results of production function show that material incentive is still effective, training needs to be improved. At the same time, the technical inefficiency function shows a better estimation results. The quality of employees, the degree of staff development and the level of mechanical equipment are helpful to improve human resource efficiency. Generally speaking, the level of human resource efficiency of14sample enterprises is low, needs to be improved urgently.Through comparative analysis this paper finds that HR efficiency of construction enterprises in different regions are quite different, but there is no direct contact with the level of region’s economic development. HR efficiency of different types enterprises are also quite different, compared with traditional construction enterprise, diversified enterprises have obvious advantages. Finally, this study provides evidence-based five suggestions to enhance the HR efficiency of China construction enterprises.