Technology

Database is a large set of data containing all the information important to an organization. The definition of database specifies the importance of the database.

A business organization maintains a database of their products, employees, customers and anything which is important to their organization. For example,

• employee records
• customer records
• questionnaires
• Information about different other businesses to which the business organization is linked.

Without maintaining a sound database an organization cannot function properly.

• The manual procedures will take long time. This will affect the efficiency of the business organization.
• Changing the information which is currently held by the organization will take more.
• The management problems will arise.
• Without sound database it will be difficult to take decisions.
• There will be no control on the business.
• There will be a risk of frauds because no record of transactions will be held.
• It will be difficult to manage the labour and the employees. Without a data base labour turnover cannot be found and business may have to face great loses as the cost will rise due to high labour turnover.
• It will be difficult to root out the problems faced by an organization.
• The organization will be entangled in its internal affairs and will not be able to focus on expanding the business.
• Management will take time in decision making and business might lose to its competitors.
• Senior managers will not be able to provide a reliable long term planning.
• Non routine decisions will be difficult to take and will create problems for middle managers.
• Even business organization’s day to day operational activities will be affected.
• The structure of organization will be rigid. It would be difficult for the business organization to mould itself according to the present situation, they will be facing.