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PRESIDENCY COLLEGE
COLLEGE OF BUSINESS ADMINISTRATION

BERHAMPUR, GANJAM

A SUMMER INTERNSHIP PROJECT REPORT ON

“PERFORMANCE APPRAISAL” IN

REPORT SUBMITTED FOR THE PARTIAL

FULFILLMENT FOR THE DEGREE
(BBA)

SUBMITTED BY:
SUSRI SMARANIKA SETHI
ROLL NO: CB214220
Reg No:44119/2019

INTERNAL GUIDE: EXTERNAL GUIDE:

Mrs. Deeptimayee Dash Mrs.Prajalin nayak
.
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DECLARATION:

I SUSRI SMARANIKA SETHI , a student of Bachelor of Business

Administration; bearing Roll No: CB214220 do here by declare that the
facts and finding presented in this report entitled "PERFORMANCE
APPRISAL'' are true to the best of my knowledge, which is being
submitted to the Berhampur University through "COLLEGE OF
BUSINESS ADMINISTRATION BERHAMPUR ”for the partial fulfilment
of the degree in BBA.

I further declare that this is my original work which has not been
submitted to any other institution, Organisation or University and also not
published anywhere else earlier.

Place:

Date:

Full Signature of Student

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GUIDE CERTIFICATE:

This is to certify that Ms. SUSRI SMARANIKA SETHI bearing the Roll
No: CB7319, student of BBA under Berhampur University; has
successfully completed her project work entitled "PERFORMANCE
APPRISAL'' under my guidance and supervision.

I wish her all the success.

( Mrs. DEEPITYMSYEE DASH)

PROJECT GUIDE
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ACKNOWLEDGEMENT

I take this opportunity to express my profound gratitude and deep

regards to my guide Mrs. DEEPITYMAYEE DASH for her exemplary
guidance, monitoring and constant encouragement throughout the
course of this thesis. The blessings, help and guidance given by him
time to time shall carry me a long way in the journey of life on which I am
about to embark.

I also take the opportunity to express a deep sense of gratitude to my

friends and teachers for their valuable information and guidance, which
helped me in completing this task through various stages.

Lastly, I thank almighty, my parents for their constant encouragement

without which this assignment would not be possible.

Berhampur.

Date:
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(Full Name of Student)

PREFACE:

This report has been prepared as a part of my project, as a part of BBA.

The report is prepared with the view to include all the details regarding
the project that I carried out.

The research provides an opportunity to a student to demonstrate

knowledge, skill and competencies required during project. The training
project helps to understand the working in an organization, the
challenges that are faced there and how to get rid of those problems.
Although I have tried my level best to prepare this as an error-free
report. Every effort has been made to offer the most authenticated
position with accuracy.

The report has been divided into 8 chapters. The first part contains:
Introduction to the topic, second part gives a brief overview about the
organization. The middle part consists of the objectives of the project
and the methodology used in the project. Fourth chapter is the most
important part as it contains the findings and the analysis of data. Last
part contains the conclusion and suggestion.
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CONTENT:
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SL NO CHAPTRER NO TOPIC PAGE

NO

1 1 INTRODUCTION
 Background of the 8
study
 Importance and 11
perpose
 Scope of performance 18
appraisal
 Objective of 20
performance appraisal
 Importance of 22
performance appraisal
 Limitation of 26
performance appraisal
2 2 COMPANY PROFLIE 27

3 3 RESEARCH 41
METHODOLOGY

4 4 DATA ANALYSIS AND 43

INTERPRETATION

5 5 FINDING AND 61
SUGGESTION

6 6 CONCLUSION 63

7 7 BIBLIOGRAPHY 64

8 8 QUESTIONARY 65
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CHAPTER- 1

INTRODUCTION

Background of the study

Performance is synonymous with behaviour, it is what
people actually do. Performance includes those actions that are relevant
to the organizational growth and can be measured in terms of each
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individual's proficiency (level of contribution). Effectiveness Performance

refers to the evaluation of results of performance that is beyond the
influence or control of the individual.

Good performance by the employees creates a culture of

excellence, which benefits the organization in the long run. The activity
includes evaluation of jobs and people both. managing gender bias,
career planning, and devising methods of employee satisfaction etc. the
efforts are to make to generate the individual's aspirations with the
objectives of the organization. Organization has to clear the way of career
advancements for talented and hardworking people. Fear of any kind from
the minds of the employees should be removed so that they give best to
their organization. Allow free flow of information. Communication network
should be designed in such a way no one should be allowed to become a
hurdle. This enables the managers to take correct decisions and that too
quickly.

Today's working climate demands a great deal of

commitment and effort from employees, who in turn naturally expect a
great deal more from their employers. Performance appraisal is designed
to maximize effectiveness by bringing participation to more individual level
in that it provides a forum for consultation about standards of work,
potential, aspirations and concerns. It is an opportunity for employees to
have significantly greater influence upon the quality of their working lives.
In these times of emphasis on "quality", there is a natural equation: better
quality goods and services from employees who enjoy better quality
"goods and services from their employers.

Performance appraisal must be seen as an intrinsic part

of a manager's responsibility and not an unwelcome and time-consuming
addition to them. It is about improving performance and ultimate
effectiveness.

Performance appraisal is a systematic means of

ensuring that managers and their staff meet regularly to discuss post and
present performance issues and to agree what future is appropriate on
both sides.
This meeting should be based on clear and mutual
understanding of the job in question and the standards and outcomes,
which are a part of it. In normal circumstances, employees should be
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appraised by their immediate managers on one to one basis. Often the

distinction between performance and appraising is not made. Assessment
concerns itself only with the past and the present. The staff is being
appraised when they are encouraged to look ahead to improve
effectiveness, utilize strengths, redress weaknesses and examine how
potentials and aspirations should match up.

It should also be understood that pushing a previously

prepared report across and desk cursorily inviting comments, and
expecting it to be neatly signed by the employee is not appraisal - this is
merely a form filling exercise which achieves little in terms of giving staff
any positive guidance and motivation.

THE APPRAISAL OF PERFORMANCE SHOULD BE GEARED TO:

 Improving the ability of the job holder

 Identifying obstacles which are restricting performance
 Agreeing a plan of action, that will lead to improved performance.

It is widely accepted that the most important factor in organization

effectiveness is the effectiveness of the individuals who make up the
organization. If every individual in the organization becomes more
effective, then the organization itself will become more effective. The task
of reviewing situations and improving individual performance must
therefore be a key task for all managers.

For appraisal to be effective, which means producing results for the

company, each manager has to develop and apply the skills of appraisal
these are :-

Setting standards on the performance required, which will contribute to the

achievement of specific objectives.
Monitoring performance in a cost-effective manner, to ensure that
previously agreed. performance standards are actually being achieved on
an ongoing basis.
Analyzing any differences between the actual performance and the
required performance to establish the real cause of a shortfall rather than
assume the fault to be in the jot holder.
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Interviewing having a discussion with the jobholder to verify the true cause
of a shortfall, a developing a plan of action, which will provide the
performance.

Appraisal can then become a way of life, not concerned simply with the
regulation of rewards and the identification of potential, but concerned with
improving the performance of the company. The benefits of appraisal in
these terms are immediate and accrue to the appraising manager, the
subordinate manager/employee, and to the company as a whole.
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IMPORTANCE AND PERPOSE:-

Performance Appraisal has been considered as the most significant an

indispensable tool for an organization, for an organization, for the
information it provides is highly useful in making decisions regarding
various personnel aspects such as promotion and merit increases.
Performance measures also link information gathering and decision
making processes which provide a basis for judging the effectiveness of
personnel sub-divisions such as recruiting, selection, training and
compensation. Accurate information plays a vital role in the organization
as a whole. They help in finding out the weaknesses in the primary areas.
Formal Performance Appraisal plans are designed to meet three
needs, one of the organization and the other two of the individual namely:
1. They provide systematic judgments to back up salary increases,
transfers, demotions or terminations
2. They are the means of telling a subordinate how he is doing and
suggesting needed changes in his behavior, attitudes, skills or job
knowledge. They let him know where he stands with the Boss.
3. Superior uses them as a base for coaching and counseling the
individual.

On the basis of merit rating or appraisal procedures, the main objectives

of Employee Appraisal are:
1. To enable an organization to maintain an inventory of the number
and quality of all managers and to identify and meet their training
needs and aspirations.
2. To determine increment rewards and to provide reliable index for
promotions and transfers to positions of greater responsibility.
3. To suggest ways of improving the employee s performance when he
is not found to be up to the mark during the review period.
4. To identify training and development needs and to evaluate
effectiveness of training and development programmes.
5. To plan career development, human resource planning based
potentials.

PERFORMANCE APPRAISAL STRUCTURE IN THE

ORGANIZATION:-

Summary of the performance analysis system:-

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Setting performance standards, observing and providing feedback, and

conducting appraisals enables the Team Leader to achieve the best
results through managing employee performance.

To begin the process, the Team Leader and the employee

collaborates on the development of performance standards. The Team
Leader then develops a performance plan that directs the employee's
efforts toward achieving specific results, to support
organizational growth as well as the employee's professional growth.
Discussion of goals and objectives throughout the year provides a
framework to ensure that employees achieve results through One on One
and mutual feedback. At the end of the rating period,
the Team Leader appraises the employee's performance against existing
standards, and establishes new goals together for the next rating period.

As the immediate supervisor, the Team Leader plays an important role;

his closest interaction with the employee occurs at this level.

There are four key element in the appraisal system:-

1. Set objectives - Decide what the Team Leader wants from the
employees and agree these objectives with them.
2. Manage performance - Give employees the tools, resources and
training they need to perform well.
3. Carry out the appraisal - monitor and assess the employees'
performance, discuss those assessments with them and agree on future
objectives.
4. Provide rewards/remedies - Consider pay awards and/or promotion
based on the appraisal and decide how to tackle poor performance.
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Performance standards:-
How does the Team Leader decide what's acceptable and what's
unacceptable performance? The answer to this question is the first step in
establishing written standards.

Performance expectations are the basis for appraising employee

performance. Written performance standards let the Team Leader to
compare the employee's performance with mutually understood
expectations and minimize ambiguity in providing feedback. Having
performance standards is not a new concept; standards exist whether or
not the are discussed or put in writing. When the Team Leader observes
an employee's performance, he usually makes a judgment about whether
that performance is acceptable. Standards identify a baseline for
measuring performance. From performance standards, the Team Leader
can provide specific feedback describing the gap between expected and
actual performance.

Guiding principles:-

Effective performance standards:

 Serve as an objective basis for communicating about performance.

 Enables the employee to differentiate between acceptable and
unacceptable results.
 Increase job satisfaction because employees know when tasks are
performed well.
 Inform new employees of your expectations about job performance.

Key Responsibility Area:-

The Team Leaders in association with the Project Manager write

performance standards for each key area of responsibility on the
employee's job description. The employee actively participates in its
development. Standards are usually established when anassignment is
made, and they are reviewed if the employee's job description is updated.
The discussions of standards include the criteria for achieving satisfactory
performance and the proof of performance (methods the Team Leader will
use to gather information about work performance).
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Characteristics of Performance Standards:-

Standards describe the conditions that must exist before the performance
can be rated satisfactory. A performance standard should:
 Be realistic, in other words, attainable by any qualified, competent,
and fully trained person who has the authority and resources to
achieve the desired result
 Describe the conditions that exist when performance meets
expectations
 Be expressed in terms of quantity, quality, time, cost, effect, manner
of performance, or method of doing
 Be measurable, with specified method(s) of gathering performance
data and measuring performance against standards

Expressing Standards:-

The terms for expressing performance standards are outlined below:

 Quantity: Specifies how much work must be completed within a
certain period of time.
 Quality: Describes how well the work must be accomplished.
Specifies accuracy, precision, appearance, or effectiveness.
 Timeliness: Answers the questions, by when? , How soon? , Or
within what period?
 Effective Use of Resources: Used when performance can be
assessed in terms of utilization of resources: money saved, waste
reduced.
 Effects of Effort: Addresses the ultimate effect to be obtained;
expands statements of effectiveness by using phrases such as: so
that, in order to, or as shown by.
 Manner of Performance: Describes conditions in which an
individual's personal behavior has an effect on performance, e.g.,
assists other employees in the work unit in accomplishing
assignments.
 Method of Performing Assignments: Describes requirements; used
when only the officially prescribed policy, procedure, or rule for
accomplishing the work is acceptable.

Performance Measurements:-
Since one of the characteristics of a performance standard is that it can be
measured, the Team Leader identifies how and where evidence about the
employee's performance will be gathered. Specifying the performance
measurements when the responsibility is assigned will help the employee
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keep track of his progress, as well as helping the Team Leader in the
future performance discussions.
There are many effective ways to monitor and verify performance, the
most common of which are:
 Direct observation
 Specific work results (tangible evidence that can be reviewed
without the employee being present)
 Reports and records, such as attendance, safety, inventory, financial
records, etc.
 Commendations or constructive or critical comments received about
the employee's work.

Observation and Feedback (One on One) :-

Once performance objectives and standards are established, the Team
Leader observes the employees' performance and provides feedback. The
Team Leader has a responsibility to recognize and reinforce strong
performance by an employee, and identify and encourage improvement
where it is needed. The Team Leader provides informal feedback almost
every day.

By observing and providing detailed feedback, the Team Leader plays a

critical role in the employee's continued success and motivation to meet
performance expectations.

One On One Sessions:-

One on One is a method of strengthening communication between the

Team Leader and the employee. It helps to shape performance and
increase the likelihood that the employee's results will meet expectations.
One on One sessions provide the Team Leader and the employee the
opportunity to discuss her progress toward meeting mutually established
standards and goals. A One on One session focuses on one or two
aspects of performance, rather than the total review that takes place in a
performance evaluation.

Guiding Principle:-
Effective One on One can:
 Strengthen communication between the Team Leader and the
employee
 Help the employee attain performance objectives
 Increase employee motivation and commitment
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 Maintain and increase the employee's self-esteem

 Provide support

Key Elements of One on One:-

To make One on One sessions effective, the Team Leader keeps the
following key elements of One on One in mind while conducting such a
session:
 Observe the employee's work and solicit feedback from others.
 When performance is successful, take the time to understand why.
 Advise the employee ahead of time on issues to be discussed.
 Discuss alternative solutions.
 Agree on action to be taken.
 Schedule follow-up meeting(s) to measure results.
 Recognize successes and improvements.
 Document key elements of One on One session.

Questions to Consider during One on One:-

To provide effective feedback the Team Leader must understand the

elements of performance and analyze marginal performance. These
questions are kept in mind:
 How is the employee expected to perform?
 Does the employee understand these expectations? If not, why not?
 Does the employee know what successful results look like? How
does the Team Leader know?
 Does the employee know the performance is marginal? How does
the Team Leader know?
 Are there obstacles beyond the employee's control? Can the Team
Leader remove them?
 Has the employee ever performed this task satisfactorily?
 Is the employee willing and able to learn?
 Does satisfactory performance result in excessive work being
assigned?

During the One on One Session:-

When the Team Leader conducts a One on One session to provide

positive feedback to the employee, he keeps the following points in mind:
 Describe the positive performance result or work habit using specific
details.
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 Ask the employee's opinion of the same product or behavior.

 Ask the employee to identify elements that contributed to success
(adequate time or resources, support from management or other
employees, the employee's talent and interest in the project).
 Discuss ways in which the Team Leader and the employee can
support continued positive results.
 Reinforce for the employee the value of the work and how it fits in
with the goals of the work unit or department.
 Show your appreciation of the positive results and your confidence
that the employee will continue to perform satisfactorily.
 If appropriate, document your discussion for the employee's file.

When the Team Leader conducts a One on One session to improve

performance, he uses the following format:

 Describe the issue or problem, referring to specific behaviors.

 Involve the employee in the problem-solving process.
 Discuss causes of the problem.
 Identify and write down possible solutions.
 Decide on specific actions to be taken by each of the Team Leader.
 Agree on a follow-up date.
 Document key elements of the session.

Follow-Up Discussion:-

During a follow-up discussion, the following steps are followed:

Review the previous discussion(s).
 Discuss insufficient improvement and ask for reasons why.
 Indicate consequence of continued lack of improvement.
 Agree on action to be taken and set a follow-up date, if appropriate.
 Convey confidence in the employee.
 Document the discussion.
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Scope of performance appraisal:-

Provides Performance Feedback

Performance appraisal helps managers in providing feedback about
performance to its employees. Feedback enables employees to avoid their
mistakes and improve their productivity. Employees are interested in
knowing the result of their performance. They feel satisfied and happy by
knowing it. It motivates them to perform better in the future for getting
better pay. Through performance appraisal managers are able to evaluate
the employee’s performance and deliver their feedback to them
accordingly

Decides Employee’s Compensation

Providing the right remuneration to employees is important for every
organisation. It should be paid fairly to all of them according to their
efforts, performance and skills. Performance appraisal makes it easy to
measure the performance of employees and award them accordingly.
Employees performing well are awarded better incentives and increment
in their pay.

Validation Of Selection Process

Performance appraisal enables the validation of the selection process.
Selecting a proper selection channel is a must for recruiting better human
resources. Recruitment and selection require lots of organization time,
effort, and money.
Validation of a selection procedure helps in finding out its positive and
negative aspects and thereby helps the company in selecting a suitable
tool for selection. Different tools like application blanks, psychological
tests, interviews, etc. used in the selection process help in measuring the
candidate’s performance and selecting the right candidate.

Identify Employee’s Training Needs

Training and development programmes help in improving the productivity
of manpower. It should be provided by the organization to its employees
from time to time to improve their skills and confidence level.
Performance appraisal helps supervisors in detecting the decencies in the
performance of employees due to a lack of skills and knowledge. These
problems can easily overcome by providing proper training and education
to them. Through performance, appraisal companies are able to design
better training programs for their employees.
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Motivates Employees
Performance appraisal helps in motivating employees toward their
targeted roles and objectives. Employers are able to evaluate the
efficiency of their workers through this. It can be ensured whether they are
working efficiently or not towards the achievement of organisation
objectives. When employees know that their result will be checked it will
motivate them to perform well.

Helps In Promotion And Demotion

Giving of promotion and demotion to employees is an important decision
to be taken by managers. Performance appraisal helps them in taking
these decisions fairly and properly without biased. Through performance
appraisal, they are able to measure the performance of all and are able to
judge easily who is performing well and who is not. Employees performing
their task efficiently are promoted to higher post whereas if they are found
inefficient they are demoted to lower post.

Facilitates Communication
Performance appraisal facilitates the efficient flow of information within the
organization between employers and employees. Employers are able to
understand their subordinate’s nature by measuring their output. They are
able to find out their employees strengths and weakness and suggest
them ways to overcome their deficiencies.
This develops better employer-employee relations which create better
trust and confidence among them. Employers regularly communicate with
their subordinates and provide them with feedback about their work. This
way performance appraisal develops a better network for communication
between the two which helps in clearing all doubts and queries.
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Objectives of a performance appraisal

1. Help employees set goals

One of the most important objectives of a performance appraisal, after
improving performance, should be to help employees set goals for the
coming year. Employees need to know what you expect them to do and
whether the goals are geared toward customer service, operations, or
professional development.

2. Motivate high performing employees

Performance appraisals are a great opportunity to let employees know
what they’re doing right and how they can do more of it. The process itself
will let you communicate to employees what superior performance looks
like, whether that’s short resolution times for customer service calls or
thinking fast in a crisis.

Since most people want to be high performers — it usually leads to a raise

and/or a promotion — giving your employees this information will leave
them with something to aim for. They’ll also be looking for examples in
their own work to point to once they know what “high performing” means in
your organization.

3. Counsel underperforming employees

It’s not an ideal situation, but the performance appraisal process also
gives you an opportunity to counsel employees who aren’t meeting
company standards. Maybe an underperforming employee hasn’t set
goals, or maybe they need to better learn their job or skills related to their
job. If this is the case, you can help them come up with an action plan to
improve their performance.

In a situation like this, you’ll want to point out the employee’s strengths as
well as their weaknesses. The employee likely knows that they’re not up to
par, and as a manager, you’ll need to work with them to find out why their
work isn’t satisfactory and formulate a plan to help them improve.

4. Support for raises and promotions

A lot of companies already tie performance appraisals to raises and
promotions, as pay is often in line with an employee’s performance. When
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you take the time to measure how an employee is doing and review
whether they’ve met the goals set for the previous period, it’s much easier
to determine how much you’ll boost their pay or if they’re ready to move to
the next level in your organization.

Performance appraisals enable you to identify which team members are

performing the best. This might be easier in a department that uses hard
numbers to measure performance, like sales or customer service. But
you’ll see a common theme among most top performers, like high-quality
work and the desire to continuously improve. You should be able to
reward them accordingly.

5. Plan for new hires

If you’re conducting regular performance appraisals and noticing a
common theme, such as employees being stretched too thin, this can help
you build the case for hiring additional employees. You can figure out
which departments are well staffed and which ones need more talent to
help get the work done.

Performance appraisals can also help you identify the hidden gems in
your organization who have the potential to move up or even be a
benchmark for future hires. For example, if an employee is regularly
meeting goals that you’ve set in previous reviews, you can use the results
to gauge how well they execute on those goals.

6. Determine overall training needs

Part of the performance appraisal process will be to determine which
employees need individual training. As you do this, you can plan the
overall training budget and prioritize training for the entire organization.
This can also help you measure how effective your current training
practices are.

For example, you might notice that most of the finance department is
struggling to understand how to best use the new billing software, even
though the IT team has already run a training workshop. In that case, it
might make sense to arrange for a group training customized for your
organization and led by a third party that can better explain how to use the
software.

7. Create a paper trail

Almost no one likes to think about this, but if you have to terminate an
employee or transfer them to another department, they could legally
challenge the decision. A performance appraisal can be a form of
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evidence that the employee was treated fairly, particularly if the employee
complains about discrimination. For example, if the performance appraisal
notes that the employee hasn’t been meeting sales quotas, that can help
the company’s lawyer defend a claim if the employee sues the business.

Importance of performance appraisal

As we have said, the Importance of performance appraisal has no limit.

Having a valuation conversation with employees can help improve the
bottom line by aligning individual performance with business objectives. It
creates a more people-focused culture and an environment that wants to
stay, progress, and improve staff.

1. Growing progress and development

Organizations that provide clear advancement opportunities for new
growth are more likely to be able to retain talented employees by mapping
a career path for them.

Regular performance looking will help employees identify when they are
ready to take on more responsibility. Setting the time to discuss an
employee’s personal ambitions will help organizations spot and develop
potential talent and build a strong succession pipeline.

2. Culture of faith and openness

In today’s fastest-growing business world, maintaining a meaningful, two-
way dialogue with employees is more important than ever to help retain
talented people within your organization.

One of the major manufacturers for employee engagement is to ensure

that employees have a voice and evaluation and performance review
meetings can help empower employees to fuel discussion and share their
views.

They will encourage ideas to influence innovation by uplifting ideas, and

relationships that develop from open communication between evaluation
systems will help employees be more able to discuss and discuss any
ideas or issues beyond these meetings.

3. Employee recognition and rewards

The evaluation gives workers an opportunity to recognize and reward and
to ensure that they feel valued for the work. By monitoring performance
and progress against objectives, employers can evaluate whether
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employees can reward employees with pay increases, promotions, or

bonuses. This is an opportunity to thank you and provide verbal feedback
and appreciation.

The highlight of any success is that the reward does not have to be
financial. Although money is still of great importance, and salaries should
be reviewed regularly so that they remain competitive, and performance-
wise, simple and sincere confessions still go a long way toward employee
involvement.

4. New Challenges and Explicit Purposes

Feasibility is a real feeling of employees where employees with great
workplace culture. They understand what the organization is trying to
achieve, motivated by its mission and values , and recognize how their
role plays a part in achieving overall success.

The discussions that will be held during the evaluation meetings will help
employees understand how their individual objectives will contribute to the
larger business plan.

It helps in understanding the ownership of employees and empowering

them to achieve the required results in a joint venture. It is also a great
opportunity to review goals regularly and provide ongoing challenges,
ensuring that employees are motivated by new goals and experiences.

5. Support and training

Open discussions on performance can help identify an issue early and
provide an opportunity to explore positive solutions. The manager can
provide additional training and assistance to the staff to be able to achieve
such results that they will feel proud of. High-performing workers may be
supported with further training to help advance their career progression.

6. Long-term discontent resistance

They can usually be nipped in the bud before anyone leaves the point if
the assessment can be raised through meetings. This is a great
opportunity for an employee to raise any concerns or concerns, or to hold
back on whatever obstacles they feel might be in place. Helps to create a
happy workforce and fuel a culture of openness and trust while listening to
staff and addressing any concerns.

7. Assist staff in providing an effective evaluation system

To work best in evaluating and communicating performance, managers
need to feel effectively equipped to provide regular feedback and ongoing
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performance management. Investing in training is a worthwhile investment

for managers capable of providing effective performance evaluation with a
practical approach.

Maintaining a natural management style will encourage them to develop

the trust and respect they need to develop open and transparent
relationships and develop skills such as active listening and performance
assessment that will help ensure a constructive assessment system.

8. Validate the selection process

Performance appraisal is a way of validating both internal (promotion and
transfer) and external (recruiting new employees from outside). Spending
a lot of time and money on hiring organizations and hiring employees. The
various tools used in the selection process are application vacancies,
interviews, psychological tests, etc.

These tools are used to predict (estimate) a candidate’s performance on

the job. An accurate performance evaluation finds out the validity of
various selection tools and can therefore follow appropriate steps for
selecting employees in the future.

9. Propaganda
Performance appraisal is a way to find out which employee should be
given a promotion. Past evaluations, along with other background data,
will enable you to select the right people for promotion.

10. Transfer
Performance appraisal is useful for transfer decision making. Transfers
often change job responsibilities, and it is important to find employees who
can take on these responsibilities. It is possible through evaluation of such
identification performance of employees who can be transferred.

11. Compensation decisions

Performance appraisal can be used to compensate employees by
increasing their pay and other incentives. This is also true of managers
and employees of non-organized organizations. Good performance
qualifications are rewarded with salary.

12. Human Resource Planning (HRP)

The appraisal process helps in human resource planning (HRP). Accurate
and current appraisal data about certain employees Without the
knowledge of who is capable of being promoted, demoted, transferred,
laid off or terminated, can not
 Page | 26

13. Career Development

Performance appraisal also enables managers to coach and counsel
employees in their career development.

14. Performance response

Most employees are currently interested in learning how they are doing
well and how they can do better in the future. They want to disseminate
this information and improve their performance to get merit pay. Correct
performance feedback can improve an employee’s future performance.
This gives him satisfaction and motivation.

15. Employee training and development decisions

Performance appraisal information is used to find out if an employee
needs additional training and development. Impairment of performance
may be due to insufficient knowledge or skills.

For example, a professor can improve his skills by attending workshops or

seminars about his subject. Performance appraisal helps a manager find
out if additional training is needed to improve his or her current job
performance. Similarly, the results of the performance evaluation showed
that he could perform better in the higher positions than he was trained for
the higher-level positions.

16. Layoff decision

Performance evaluation is a good way of making layoff decisions. If the
need arises, the employee may be asked to close the lay. The weak
actors are first closed. If there is no performance appraisal, then there is
the possibility that the best men in the department may be put off.
 Page | 27

Limitation of performance appraisal

The following are the limitations of performance appraisal:

1. Halo effect
In this case the superior appraises the person on certain positive qualities
only. The negative traits are not considered. Such an appraisal will no give
a true picture about the employee. And in some cases employees who do
not deserve promotions may get it.

2. Horn effect.
In this case only the negative qualities of the employee are considered
and based on this appraisal is done. This again will not help the
organization because such appraisal may not present a true picture about
the employee.

3. Central tendency
In this case the superior gives an appraisal by giving central values. This
prevents a really talented employee from getting promotions he deserves
and some employees who do not deserve any thing may get promotion.

4. Leniency and strictness

Some bosses are lenient in grading their employees while some are very
strict. Employee who really deserves promotions may loose the
opportunity due to strict bosses while those who may not deserve may get
henefits due to lenient boss..

5. Spill over effect

In this case the employee is judged positively or negatively by the boss
depending upon the past performance. Therefore although the employee
may have improved performance, he may still not get the benefit.

6. Fear of loosing subordinates and spoiling relationsMany hosses do

not wish to spoil their relations with their subordinates. Therefore when
they appraise the employee they may end up giving higher grades which
are not required. This is a n injustice to really deserving employees.
 Page | 28

7. Goodwill and techniques to be used

Sometimes a very strict appraisal may affect the goodwill between senior
and junior. Similarly when different departments in the same company
 Page | 29

CHAPTER NO-2

COMAPANY PROFILE

INDUSTRIAL PROFILE
 Page | 30

Online shopping in India

It is a fact that a great online shopping revolution is expected in India in

the coming years. There is a huge purchasing power of a youth
population aged 18-40 in the urban area.

If we observe the growth of Indian online transactions

(Info by: IAMAI), it is getting doubled year by year. The usage of internet
in India is only 4% of the total population. This is also getting increased
day by day as the costs of computers are decreasing and net
penetration is increasing. The cost of internet usage is also getting
lower, with good competition among the providers. Wi-Fi & Wilma is also
getting tested in Bangalore and other cities in India. This will increase
the usage as it goes more on wireless internet.

Indians are proving every time that they can beat the
world when it comes to figures of online shopping. More andc more
Indians are going to online shopping and the frequency of India's online
buying is crossing the overall global averages.

Factors That Boost Online Shopping in India

 Rapid growth of cybercafés across India

 Access to Information
 The increase in number of computer users.
 Reach to net services through broadband
 Middle-class population with spending power is growing. There are
about 200 million of middle-class population good spending
powers. These people have very little time to spend for shopping.
Many of them have started to depend on internet to satisfy their
shopping desires.

Few Facts about Online Shopping

 Page | 31

The figures from IAMAI show that the internet users in India will grow to
200 million by 2010. Around 25% of regular shoppers in India are in the
18-25 age groups, and 46% are in the 26-35-year range.

 Indian online matrimonial sector is worth around $230 million.

 Worldwide e-commerce is only growing at the rate of 28%, since
India being a younger market, the growth of e-commerce is
expected at 51% in the coming years.
 In line with global trends finally India has also started shopping
online these days. As per the study by IAMAI online shopping in
India has rose from $11million in 1999-2000 to $522 million in
2008 and it is expected to rise above $700 million by end March
2010.
 Indians are also Shopaholics like other Asians. There is a strong
booming young adult population in India with good levels of
disposable income.
 Page | 32

History of flipkart

It was founded in 2007 by sachin bansal and binny bansal. Both alumni
of the Indian institute of technology Delhi. They worked for amazon.com
and left to create their new company incorporated in October 2007, as
flipkart online service pvt ltd. The first product they sold was the book
"leaving Microsoft change the world to customer from Hyderabad".

Flipkart now employees more than 33,000 people. Flipkart allows

payment methods such as cash on delivery, credit on debit card
transaction. net banking, e-gift voucher and card swipe on delivery. After
failure of its 2014 big billion sale, it recently completed the second
edition of big billion sale hold between October 13 and 17 where it is
reported that they saw a business turn over of 300million in gross
merchandise volume.

It is registered in Singapore but has its headquarter in Bangalore,

Karnataka, india. It launched its own product range under the name
"DIGFLIP" with products including tablets. USB and laptop bags. In may
2014, flipkart received $210 million from DST global, in July 2014 it
raised $1 billion led by existing investors tiger global and south African's
media group Naspers and in may 2015 it raised $550 million from some
of its existing investors. Flipkart last fund raising round in may 2015 has
pegged its valuation at $15 billion in february2016. merger Staley,
marked down its investors value to $11 billion.

DETAIL ABOUT FLIPKART

 Page | 33

 Type-private
 Industry internet
 Founded 2007
 Founder sachin bansal, binny bansal
 Headquarter- Bangalore. Karnataka, india
 Key people sachin bansal(chairman), binny bansal(CEO)
 Service E-commerce(online shopping)
 Revenne- 2846 crores FY 2014(us$ 1 billion in gross merchandise
value 2013-14)
 No of employees - 33,000(2015)
 Subsidiaries – myntra
 Slogan: ab har wish hogi puri Website :-flipkart.com

AWARDS AND RECOGNITION

 In September 2015, sachin bausal and binny bansal entered forbs

India rich list debuting at the 86 position with a net worth of $1.3
billion each.
 Co-founder of flipkart, sachin bansal got entrepreneur of the year
award 2012-2013 from economic times, leading Indian economic
daily.
 Flipkart.com was awarded Young Turk of the year at CNBC TV
18h Indian business leader awards 2012(IBLA).
 Flipkart.com got nominated for India mart leaders of tomorrow
awards 2011.

PRODUCT LIST PROVIDED BY FLIPKART

 Clothing
 Footwear
 Mobile and accessories
 Computers
 Watches, bags and wallets
 Camera
 Books:
 Home and kitchen appliances
 Beauty and health care
 Pens and stationary
 Page | 34

 Games
 TV. videos and audios
 Toys
 Music, movies and posters.
 Baby care
 Sports and fitness, etc

THEROTICAL FRAMEWORK
 Page | 35

INTENTION TO SHOP ONLINE

Consumer's intention to shop online refers to their willingness to make

purchases in an Internet store. Commonly, this factor is measured by
consumer's willingness to buy and to return for additional purchases.
The latter also contributes to customer loyalty. Consumer's intention to
Shop online is positively associated with attitude towards Internet
buying, and influences their Decision-making and purchasing behaviour.
In addition, there is evidence of reciprocal influence between intention o
shop online and customer satisfaction.

ONLINE SHOPPING DECISION MAKING

Online shopping decision-making includes information seeking,

comparison of alternatives, and choice making. The results bearing on
this factor directly. influence consumer's purchasing behaviour. In
addition, there appear to be an impact on user's satisfaction. Though it is
important, there are only five studies that include it. According to Hauls
and Trifts (2000). potential consumers appear to use a two-stage
process in reaching purchase decisions.

Initially, consumers typically screen a large set of products in order to

identify a subset of Promising alternatives that appears to meet their
needs. They then evaluate the subset in greater depth, performing
relative comparisons across products based on some desirable
attributes and make a purchase decision.

ONLINE PURCHASING

This is the most substantial step in online shopping activities, with most
empirical research using measures of frequency (or number) of
purchases and value of online purchases as measures of online
purchasing: other less commonly used measures are unplanned
purchases Online purchasing is reported to be strongly associated with
the factors of personal characteristics, vendor/service/product
characteristics. website quality, attitudes toward online shopping,
intention to shop online, and decision making (Andrade 2000; Bellman et
al. 1999)
 Page | 36

Factors influencing consumer to shop online

Though there are several factors that influence consumers to shop

online, but as mentioned above researchers have selected four factors
after reading literature in the field on consumer attitudes towards online
shopping and these factors are discussed below in the light of previous
literature.

Convenience

Convenience factor refers that it is easy to browse or search the

information. through online is easier than the traditional retail shopping.
Through online. consumers can easily search product catalogue but if
the consumer look generally for the same product or item in a traditional
store manually it is difficult to visit physically and time consuming also.
Convenience has always been a prime factor for consumers to shop
online. Darien (1987) mention that online shoppers carry multiple
benefits in terms of convenience, such as less time consuming,
flexibility. very less physical effort etc. Bhatnagar and Goose (2004)
claims for convenience as one of the most important advantage for
online shopping. According to the Robinson, Riley. Rettie and Wilsonz
(2007) the major motivation for online purchasing is convince in terms of
shop at any time and having bundles of items delivered at door step.

Rohm and Swaminathan's (2004) claims in "typology of online shoppers

into": Convenience shoppers, balanced buyers, variety seekers and
store-oriented shoppers, based upon their preset shopping motivation.
Rohin and Swaminathan's (2004) findings about 'convenience and
variety seeking are major motivating factors of online shopping and this
study is consistent with Morgan sky and Cude's (2000) research
findings. Web check's (1999) study shows that convenience factor is one
of the biggest advantages of online shopping. Through online purchase
consumers can easily compare the price than the traditional purchase.
So price comparison is also another convenience factor of online
shopping

Time saving
 Page | 37

Time savings is one of most influencing factors of online shopping.

Browse or search an online catalogue can save time and patience.
People can save time and can reduce effort by shopping online.
According to Rohm and Swaminathan's (2004). one possible explanation
that online shopping saves time during the purchasing of goods and it
can eliminate the travelling time required to go to the traditional store.
On the other side, some respondent think that it is also time taken for
delivery of goods or services over online shopping.

Unexpectedly time saving is not the motivating factor for the consumers
to shop online (Corbett, 2001) because it takes time receiving goods or
delivery. But time saving factor can be seen through different
dimensions i.e. "person living in Florida can shop at Harold's in London
(through the web) in less time than it takes to visit the local Burdines
department store" (Alba et al. 1997. p. 41,emphasis added).

Morgan sky and Cude (2000) have concluded that time saving factor
was reported. to be primary reason among those consumers who have
already experienced the online grocery buying. So the importance of the
time saving factor cannot be neglected as motivation behind online
purchasing. Additionally Goldsmith and Bridges (2000) emphasize that
there is a discrimination between online shopper and non online
shoppers, online shoppers are more worried about convenience. time
saving and selection whereas non online shoppers are worried about
security. privacy and on time delivery. A study by Kamariah and Salwani
(2005) shows higher website quality can highly influence customers to
shop online.

Website design/features

Website design and online shopping activity is one of the vital

influencing factors of online shopping. Website design, website
reliability/fulfilment, website customer service and website
security/privacy are the most attractive features: which influence the
perception of the consumer of online buying Shergill & Cheni (2005),
Kamariah and Salwani (2005) claims the higher website quality, the
higher consumer intends to shop from internet. Web design quality has
important impacts on consumer choice of electronic stores, stated by
Liang and Lai (2000). Website design one of the important factor
motivating consumers for online shopping. Almost 100,000 on-line
 Page | 38

shopper's surveyed by (Reibstein, 2000) shows that web site design was
rated as important factor for online shopping. Another study conducted
by Zhang, Dran, Small, and Barcellos (1999, 2000), and Zhang and
Dran (2000) indicated that website design features of the website are
important and influencing factors that leads consumer's satisfaction and
dissatisfaction with a specific website.

A study conducted by Yasmin and Nike (2010) shows a significant

relationship between online shopping activity and website features.
Website design features can be considered as a motivational factor that
can create positive or negative feelings with a website (Zhang. et al
1999). A study by Li and Zhang (2002), il website is designed with
quality features it can guide the customers for successful transactions
and attract the customers to revisit the website again. However worse
quality website features can also hamper online shopping. According to
Liang and Lai (2000). web design quality or website features has direct
impact on user to shop online.

Moreover researchers such as Belanger, Hiller and Smith (2002)

concluded that a large segment of internet users have serious concerns
of security.

Online shoppers in terms of demography

Online shoppers in terms of demography are another important aspect.

We would like to study demography in terms of age, gender, income and
education as are there any differences while consumers shop online,
differences within the age groups such as does online shopping attracts
elder people or younger people. Studies have shown that online
shoppers mainly consist of people with Higher education and income
and working in middle to senior management or professionals (Kehoe et
al., 1998: Hoffman et al. 1996). Locally, a report in the Business Times
and an online survey showed that demographically, a typical Net
shopper is mainly male, aged between 18 and 40, had attended at least
secondary school and belongs to a family with average income of at
least $5000. The online survey also showed that cyber-buyers were also
mainly Chinese below 36 years old with diplomas or degrees and
drawing a monthly salary of less than $3500. Another study by Miller
(1996) claims cyberspace is the domain of young people Bhatnagar and
Goose (2004). Sim and Kio. (2002) states as main discriminating factors
 Page | 39

appeared to be gender and income. Customer segmentation is important

for electronic commerce success, Berry (1999). Miller (1996) has
focused on demographics to show the profile of Internet users.
Bhatnagar and Ghose (2004)

Research model

The research model shown in Figure 1 is constructed by the writers on

the basis of number of researches done in the area of consumer
attitudes towards online shopping specifically and broadly on online
shopping behaviour. The diagram shown in figure I depicts the factors
influencing consumer to shop online.

Online shoppers in terms of demography

Online shoppers in terms of demography are another important aspect.

We would like to study demography in terms of age, gender, income and
education as are there any differences while consumers shop online,
differences within the age groups such as does online shopping attracts
elder people or younger people. Studies have shown that online
shoppers mainly consist of people with Higher education and income
and working in middle to senior management or professionals (Kehoe et
al., 1998: Hoffiman et al., 1996). Locally, a report in the Business Times
and an online survey showed that demographically, a typical Net
shopper is mainly male, aged between 18 and 40, had attended at least
secondary school and belongs to a family with average income of at
least $5000. The online survey also showed that cyber-buyers were also
mainly Chinese below 36 years old with diplomas or degrees and
drawing a monthly salary of less than $3500. Another study by Miller
(1996) claims cyberspace is the domain of young people Bhatnagar and
Goose (2004). Sim and Kio. (2002) states as main discriminating factors
appeared to be gender and income. Customer segmentation is important
for electronic commerce success, Berry (1999). Miller (1996) has
focused on demographics to show the profile of Internet users.
Bhatnagar and Ghose (2004)

Research model
 Page | 40

The research model shown in Figure 1 is constructed by the writers on

the basis of number of researches done in the area of consumer
attitudes towards online shopping specifically and broadly on online
shopping behaviour. The diagram shown in figure I depicts the factors
influencing consumer to shop online.

The above model shows a relationship between dependent variable

(DV) and independent variables (IDV). Consumer attitudes towards
online shopping are perceived as dependent variable whereas
convenience. time saving. website design/features and security are the
independent variables that influence the consumers to shop online. The
research model developed by the writers will serve as a basis for this
research and it will help in analyzing and interpreting the empirical
results..

Consumer buying behaviour process

In the field of Consumer behaviour research the classical model of

consumer buying behaviour is of utmost important. We as persons take
actions in purchasing and using products and services and actions are
derived by mental and social process. Behavioural science helps us to
better understand why we go for a certain product and why not, why we
set priories while making decision.

Consumer decision process carries five stages, starting with Problem

recognition and following Information search. Evaluation of alternatives
Purchase decision and finally Post Purchase behaviour. Problem
recognition starts with the perception of need and moves towards
information search where consumer uses internal and external sources
to analyze given information and use that information in the next step of
evaluation of alternatives. While 19 evaluating alternatives one
assessing values of the products by giving weights. Once you have
successfully evaluated alternatives you will move towards purchase
decision where you may encounter three possibilities, from whom to buy,
when to buy and do not buy. Once you have actually made the purchase
now it comes to Post purchase behaviour, whether you are satisfied or
dissatisfied with your purchase. Solomon, bamossy, askegaard and
Hogg (2006).
 Page | 41

Theories of planned behaviour (TPB)

Theory of planned behaviour proposed by Icek Ajzen (1988, 1991)

actually provides a link between attitude and behaviour. Consumer
action is guided by three considerations.
 Behavioural Beliefs.
 Normative Beliefs
 Control Beliefs

TPB is basically an extension of theory of reason action (TRA) proposed

by (Ajzen & Fishbein, 1980; Fishbein & Ajzen. 1975). As you can see in
the below figure and as suggested by Icek Ajzen (1988, 1991) intention
serve as a central role to perform a behaviour. Icek Ajzen (1988, 1991)
also proposed that a given behaviour is influenced by the certain factors
and these factors are assumed to be captured by the intention. In Icek
Ajzen (1988, 1991) words these intentions indicate as how one is willing
to put the effort in order to perform a given behaviour. As you can see in
the below figure attitude towards behaviour and subjective norm are
basically the factors that influence intention and as discussed above
intention serve as a central role to perform behaviour. On the other side
perceived behavioural control actually moves towards the actual
behavioural by influencing the intention.

 Behavioural belief: It's about one's belief about the final outcome of
particular behaviour, Icek Ajzen (1988, 1991).
 Attitude toward behaviour. It is about personal performance of
individual's positive or negative evaluation Icek Ajzen (1988,
1991). It is considered as personal or 20 emotional factor that can
affect in a positive or negative manner, Icek Ajzen (1988, 1991).
 Normative belief: It is about individual's particular behaviour that
can beinfluenced by other important actors. Icek Ajzen (1988,
1991). These actors can be your friends, family members. co-
workers etc.
 Subjective norm: Its concerns with social normative pressures or
other belief that can affect one's behaviour whether a person
should perform the behaviour or not, Icek Ajzen (1988.
1991).Subjective influence is basically the social influence factor.
 Perceived behavioural control: An individual's perceived ease or
difficulty of performing the particular behaviour, Ajzen. (1988). A
 Page | 42

person's way of performing a particular behaviour with some

difficult or performing it easily. Ajzen, (1988)
 Control beliefs: Person's beliefs about the presence of
circumstances that may help or prevent performance of the
behaviour. Ajzen (2001)

OBJECTIVE OF STUDY

 To find the factors that leads a website user to return to or

recommend the website Flipkart.com
 To discover the key factors that influence online buying behaviour
of consumers in India
 To identify who are the online shoppers in terms of demography
To understand the customer awareness on Flipkart.com
 To determine the factors responsible for customer satisfaction

LIMITATIONS OF THE STUDY

No research is complete without admitting the limitations that was faced

while conducting a study which will contribute to present learning. This
study too like the others have certain constrains which has been
discussed below.
 The study was restricted to Bangalore city only
 The study is mainly concentrated on Flipkart.com
 The sample of the size will be limited to time and resources
 The information will be collected valid until there is no any
technical change or any innovation
 The result is assuming that respondents have given accurate
information
 Page | 43

CHAPTER NO-2

RESEARCH METHODOLOGY

AREA OF STUDY

B2C Model of E-Commerce taking the example of www.flipkart.com

which is our case study of this project pertaining to one of the models
(B2C) of E-Commerce and the main crux of this study will be to see
how www.flipkart.com has utilized the B2C Model to revolutionize E-
Commerce in India.

The Organization, which I have selected for my Study, is

"Flipkart.com" an Emerging Indian online mega store. I would be
studying the strategies that the portal have used to attract Indian
masses, so as to give them the total online shopping experience, the
portal offers an unique strategy towards the masses to make payment
modes like Cash & Card on delivery, which invariably helps. the
masses to avoid the hassle of making online payments, as the credit
card penetration in India is very low, &people are reluctant to make
online payments more to do with the Indians psyche. Since portals
are giving a customized offering to the masses i.e rite from the wider
product portfolio to payment options, its making very convenient for
the users to have a online shopping experience hassle free. Flipkart
has followed the same business model as of Amazon.com, i.e starting
from selling books therefore we can call it as " Flipkart - The Amazon
of India " however Flipkart is now Regional based E-business portal
i.e only targeting Indian Market. More Interesting is that, the minds
that worked to start Flipkart are also the Ex. Amazon Employees.

Flipkart.com is an Indian based e-commerce company started by

Binny Bansal and Sachin Bansal, who previously worked at
Amazon.com. Post their experience, they ventured into a similar e-
business idea and launched it in India. Flipkart.com works with the
 Page | 44

aim of making products and goods easily available at the doorsteps of

anyone who has Internet access. Flipkart.com started off from selling
books in 2007, based in Bangalore, and entered then consumer
electronics category with the launch of mobile phones, in September
2010. Since then it kept on adding more new products categories
including books, mobiles, computers, cameras, home & electronic
gadgets & appliances, In addition to these very Recently. Flipkart.com
has also widened its foray by entering into the emerging digital
content market with the recent launch of Flyte, the digital music store
& is still continuing to enlarge its product portfolio. It is now one of the
leading e-commerce players in India, currently ranked no.1 online
shopping site in India, spread in 37 cities, with 11.5 million plus book
titles, 14 different categories, 26 million plus registered users and sale
of 100000 items a day. It provides online shoppers a memorable
online-shopping experience because of its innovative services like:
 Cash on Delivery.
 30-day replacement policy.
 Easy Monthly Instalment options (EMI),
 Free shipping
 Discounted prices & deals.
 Page | 45

CHAPTER NO-4

DATA ANALYSIS AND INTERPRETATION

Table No. 1:
Table showing the age of respondents:
Age No of respondent Percentage
Below 18 15 30
18-30 years 13 26
30-49 years 12 24
Above 50 years 10 20
Total 50 100

120

100

80

60

40

20

0
Below 18 18-30 years 30-49 years Above 50 years total

Column1 Column3 Column2

Inference: From the above graph it is shown those 30% respondents are
below 18, 26% are 18 and 30, 24% are 30-49, 20% above 50 years. It
means the majority of people is below 18 years.
 Page | 46

Table No. 2:
Table showing the education background of respondents.

Educational No of respondent Percentage

background
Non-matriculate 4 8
Matriculate 11 22
Graduation 24 48
Post graduated 11 22
Total 50 100

100

90

80

70

60

50

40

30

20

10

0
Non-matriculate Matriculate Graduation Post graduated total

No of respondent Percentage Column3

Inference:

From the above graph it is clear that 8% respondents are non-

matriculate, 22% are matriculate, 48% are graduation, and 22% are post
graduated. It means the majority of people are the people who are
graduated i.e. 48%
 Page | 47

Table No. 3:
Table showing occupation of respondents

Occupation No of respondent Percentage

Business 9 18
Service 11 22
Student 23 46
Other 7 14
Total 50 100

100

90

80

70

60

50

40

30

20

10

0
Business Service Student Other Total

No of respondent Percentage Column1

Inference:

From the above graph it is clear that 18% respondents are

businessman, 22% are service, 46% are student, and 14% are others
than them. It means majority of respondents are students.
 Page | 48

Table No. 4:
Table showing gender of the respondent

Gender No of respondent Percentage

Male 14 28
Female 36 72
total 50 100

100

90

80

70

60

50

40

30

20

10

0
Male Female total

No of respondent Percentage Column1

Inference:

From the above graph it is clear that, 28% of the respondents are male
and 72% people are female. It means the majority goes to the female.
 Page | 49

Table No. 5:
Table showing the income of the respondents

Income No of respondent Percentage

Below 5000 9 18
5000-10000 8 16
10000-25000 17 34
Above 25000 16 32

100

90

80

70

60

50

40

30

20

10

0
Below 5000 5000-10000 10000-25000 Above 25000 total

No of respondent Percentage Column1

Inference:

From the above graph it is clear that, 18% of respondents are having
income below 5000, 16% are having between 5000 to 10000, 34% are
having between 10000 to 25000 and 32% are having above 25000.
 Page | 50

Table No. 6:
Table showing the internet users among respondents

Internet user No of respondent Percentage

Yes 40 80
No 10 20
total 50 100

100

90

80

70

60

50

40

30

20

10

0
Yes No total

No of respondent Percentage Column1

Inference:

From the above graph it is clear that, most of the people are using
internet as 80% are user of internet and rest 20% people are non user.
 Page | 51

Table No. 7:
Table showing period of internet users

Period of internet No of respondent Percentage

Less then one year 14 28
1-3 years 9 18
3-5 years 17 34
More then 5 years 10 20

100

90

80

70

60

50

40

30

20

10

0
Less then one year 1-3 years 3-5 years More then 5 years

No of respondent Percentage Column1

Inference:

From the above graph 28% respondent are users who use internet for
less than I year, 18% are between 1-3 years, 34% are between 3-5
years and 20% are more than 5 years.
 Page | 52

Table No. 8:
Table showing the customer of flipkart

Shopping flipcart No of respondent Percentage

Yes 36 72
No 14 28
total 50 100

160

140

120

100

80

60

40

20

0
Yes No total Category 4

No of respondent Percentage Column1

Inference:

From the above graph it is clear that 72% of the respondents are user of
flipkart and 28% of respondent aren't user of flipkart.
 Page | 53

Table No. 9:

Table showing the interest of responders towards flipkart

Interested on online No of respondent Percentage

shopping
Yes 37 74
No 13 26
Total 50 100

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
Yes No total Category 4

No of respondent Percentage Column1

Inference:

From the above graph it is clear that 74% are interested on online
shopping and rest 26% people are not interested.
 Page | 54

Table No. 10:

Table showing the buying behaviour of customers regarding shopping

Products brought No of respondent Percentage

Stationeries 6 12
Cosmetics 17 34
Clothes 18 36
Electronics 5 10
Others 4 8
Total 50 100

100

90

80

70

60

50

40

30

20

10

0
Stationeries Cosmetics Clothes Electronics Others Total

No of respondent Percentage Column1

Inference:

From the above graph it is clear that 12% of respondent are interested to
buy stationeries, 34% are using cosmetics. 36% are using for cloths,
10% are interested in electronics, and rest 8% are interested for specific
things. It seems people are interested for cloths buying from flipkart.
 Page | 55

Table No. 11:

Table showing the no of time of purchasing of customers

Shopping first time No of respondent Percentage

6 month back 4 8
6-12 months 23 46
3-5 year 17 34
Mora then 5 year 6 12

50

45

40

35

30

25

20

15

10

0
6 month back 6-12 months 3-5 year Mora then 5 year

No of respondent Percentage Column1

Inference:

From the above graph it is clear that 12% of respondent are interested to
buy stationeries, 34% are using cosmetics. 36% are using for cloths,
10% are interested in electronics, and rest 8% are interested for specific
things. It seems people are interested for cloths buying from flipkart.
 Page | 56

Table No. 11:

Table showing the no of time of purchasing of customers

Frequence of No of respondent percentage

purchase
Once 13 26
2-4 times 14 28
More then 5 times 17 34
Mora then 6 times 6 12

40

35

30

25

20

15

10

0
Once 2-4 times More then 5 times Mora then 6 times

No of respondent percentage Column1

Inference:

From the above graph it is clear that 26% people used it for once, 28 %
used it for 2-4 times. 34% used it more than 5 times.12% people used
for more than 6 times, it means most of the people used it for more than
5 times.
 Page | 57

Table No. 13:

Table showing the satisfaction level of respondents.

Satisfaction level No of respondent Percentage

High satishfied 4 8
Satisfied 11 22
Dissatisfied 22 44
High dissatisifird 13 26
total 50 100

120

100

80

60

40

20

0
High satishfied Satisfied Dissatisfied High dissatisifird total

No of respondent Percentage Column1

Inference:

From the above graph it is clear that 8% people are highly satisfied, 22%
are satisfied, 44% are dissatisfied, and 26% are highly dissatisfied. It
means most of the people are dissatisfied with the flipkart.
 Page | 58

Table No. 14:

Table showing the customers preference to buy product

Likely to buy No of respondent Percentage

Flipkart 27 54
Others 23 46
total 50 100

120

100

80

60

40

20

0
Flipkart Others total

No of respondent Percentage Column1

Inference:

From the above graph it is knowing that majority of the respondents are
52% that mean most of the people are interested to do their shopping
through flipkart rather 46% people are interested to do it from other
media..
 Page | 59

Table no 15
Table showing the experience of customers in respect to flipkart

Experience No of respondent Percentage

Good 4 8
Very good 11 22
Worst 22 44
Not that much 13 26
Total 50 100

120

100

80

60

40

20

0
Good Very good Worst Not that much Total

No of respondent Percentage Column1

Inference:

from above graph it clears that 8% people like flipkart.22% says it is very
good. 44% people says that it is worst, 26% says it is not that much
good. The majority is 44% that mean people are not happy with flipkart.
 Page | 60

Table-16
Table showing the planning of respondents to buy through
flipkart

Plans for buying No of respondent Percentage

Electronics 7 14
Gifts 12 24
Cloths 22 44
Others 9 18
Total 50 100

120

100

80

60

40

20

0
Electronics Gifts Cloths Others Total

No of respondent Percentage Column1

Inference:

Above table shows that 14% people are interested to buy electronics,
24% in gifts. 44% in cloths, and 18% in others. It means most of the
people are interested to buy. clothes from flipkart.
 Page | 61

Table no 17
Table showing the customer's reason to buy through flipkart

Reason to buy No of respondents Percentage

through flipkart
Good customer 11 22
service
Good price 13 26
Timely service 17 34
Various items 9 18
Total 50 100

120

100

80

60

40

20

0
Good customer Good price Timely service Various items Total
service

No of respondents Percentage Column1

Interpretation:

above table shows that 22% people said that it gives good customer
service, 26% people says it is good in price, 34% people are satisfied
with its timely delivery. 18% are satisfied with its various item. It means
34% people like flipkart because of its timely delivery.
 Page | 62

Table no 18
Table showing the barriers to buy through flipkart

Barriers No of respondents Percentage

Worried about credit 11 22
card
Not interested to 9 18
provide personal
information
Enjoying going out 21 42
Other reasons 9 18
Total 50 100

120
100
80
60
40
20
0
d t s l
ar on ou on ta
it
c ati g s To
m in ea
red or go rr
t c i nf g he
ou l in Ot
ab na j oy
d rso En
rie pe
or id
e
W ov
pr
to
t ed
es
ter
t in
No

No of respondents Percentage Column1

Interpretation:

above table shows that 22% don't like flipkart because they are worried
about their credit card, 18% people are not interested to provide
personal information. 42% enjoy going out 18% people have other
reasons for not shopping through flipkart. It seems most of the people
love to go out for shopping.
 Page | 63

CHAPTER NO-5

FINDINGS AND SUGGESTIONS

FINDINGS:

 The research reveals that most of the users of Flipkart are females
in comparison to males i.e. about 72% of females are interested in
shopping through Flipkart.(table no 4)
 From the study it is evident that 74% of the respondents are
interested in shopping through Flipkart (table no 9)
 It is found that 36% of people bought cloths item rather than other
products from flipkart.( table 10)
 From the study it is found that 34% of the respondents have
Purchased more than 5 times from Flipkart.( table 12).
 It explains that about 44% of the respondents are dissatisfied with
th facilities of Flipkart.( table 13)
 From the study it is also found that majority of the respondents i.e.
54% like to buy through Flipkart rather than others website (table
14)
 From the study it is known that about 44% of the respondents are
agreeing that they have worst experience while purchasing
through Flipkart.( table15)
 According to data analysed, 44% of the people prefer Flipkart for
shopping cloths rather than other items. (table 16)
 The study explains that about 34% of respondents like Flipkart
because of timely service, while vast respondents have some
other reasons to like Flipkart.(table 17)
 It is also pointed out from the study that 42% of the respondents
prefer to go outside for shopping rather than online shopping
because of personal experiences and self feeling of shopping
(table 18)

SUGGESTIONS:
 Page | 64

This study suggests the following:

 IT would be better if Flipkart will improve the quality of other

items so as to increase costumer.
 If Flipkart would provide different designs and variety of
products, they can gain more no of costumers and can easily
satisfy them.
 They should add some more design, it will be better for the
company,
 According to respondents, if company improve the promotion
activities in order to get more consumers, like through pamplets,
news, specially to rural area because now a days companies
are targeting them more.
 Company should look towards its quality product as it is more
important to attract customers.
 They should add some offers with the products in every quarter
so as to gain more and more no. of costumers.

CHAPTER NO-6
 Page | 65

CONCLUSION

The study conclude that majority of the customer prefer shopping

through other shopping websites rather than Flipkart because of lack in
product variety, quality. which makes the customers more comfortable
with other shopping websites rather than Flipkart.

Consider the fact that there are many of middle class. less educated
people in india, Flipkart although has many of impact on middle class.
people but it should think about less educated people as now only
educated peoples are using the Flipkart.

So, Flipkart should increase the variety of products and they should go
with qualitative products so as to satisfy the people who are willing to
purchase through Flipkart despite of this Flipkart is providing less cost
products which helps to serve middle as well as other relevant people of
the society.

The thorough study is based on the consumer behaviour analysis which

serves a great idea regarding consumer perception when they go for
online shopping. order to satisfy themselves consumer perceive many
things before buying products and they will be satisfied if the company
meet their expectation. The Overall Brand Value of Flipkart is good, but
it is facing some tough competition from its global competitors like Ebay
and Amazon. Talking about domestic market i.c India, it is the most
superior E-business portal which is aggressively expanding & planting
its roots deep into the Indian market & at the same time shifting the
mind-set of the people from going & shopping from physical store to
online stores, which is magnificent!. Be very focused on consumers. and
build amazing experiences for the customers.

CHAPTER NO-7
 Page | 66

BIBLIOGRAPHY

 Lamb, Hair and Mc Daniel, marketing, Thomson publishers

 Philip Kotler, marketing management, 11% edition, Pearson
 www.managementparadise.com
 www.scridb.com
 www.flipkart.com
 www.commodityindia.com
 www.marketoperation.com
 www.nextbigwhat.com
 www.britannica.com
 www.ecommerce-land.com
 www.commodityindia.com
 www.marketoperation.com
 WIKIPEDIA

CHAPTER NO-8
 Page | 67

QUESTIONARY

 NAME-_______________________________
 CONTACT NO-________________________
 CITY-_______________________________
 AGE-________________________________
 Education background:-
1. Non matriculate
2. Matriculate
3. Graduation
4. Post graduation
 Occupation:-
1. Bussiness/ self employed
2. Service/executive
3. Student
4. Others
 Gender:-
1. Male
2. Female
 Average monthly income
1. Less than 5000
2. 5000-10000
3. 10000-25000
4. Mora than 25000
 Do you use internet?
1. Yes
2. No
 How long you have been using internet?
1. Less than 1 year
2. 1-3 year
3. 3-5 year
4. Mora than 5 year
 How you ever purchased anything on flipkart?
1. Yes
2. No
 Are you interested on online shopping?
1. Yes
2. No
 Which category goods have you brought through flipkart?
 Page | 68

1. Stationary
2. Cosmetic
3. Cloths
4. Electronic
 When did you shop for the first time?
1. Last 6 months
2. 6-12 months
3. 3-5 year
4. More than 5 year
 How frequently did you purchased online?
1. Once
2. 2-4 times
3. More than 5 times
4. More than 6 times
 Over all were you satisfied with your experience of shopping on
flipkart?
1. High satisfied
2. Satisfied
3. Dissatisfied
4. High dissatisfied
 Where do you most often think to buy?
1. Flipkart
2. Others
 How was your experience with flipkart?
1. Very good
2. Good
3. Worst
4. Not that much
 Which category of items you are planning to buy through flipkart?
1. Electronics
2. Gifts/accessories
3. Cloths
4. Others
 What is your main reason to buy through flipkart?
1. Good customer service
2. Good price
3. Service timely
4. Various item
 What according to you the most important barriers to purchase
online?
1. I am worried about giving my credit card number.
 Page | 69

2. I don't like providing personal information.

3. I enjoyed going out to do my shopping.