Correlation Matrix and Partial Correlation: Explaining Relationships

Abstract

One of the thrust areas in the management research is to find the ways and means to improve productivity. It is therefore important to know the variables that affect it. Once these variables are identified, an effective strategy may be adopted by prioritizing it to enhance the productivity in the organization. For instance, if a company needs to improve the sale of a product, then its first priority would be to ensure its quality and then to improve other variables like resources available to the marketing team, their incentive criteria, and dealer’s scheme. It is because of the fact that the product quality is the most important parameter in enhancing sale.