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Database management systems are important to businesses and organizations because they provide a highly efficient method for handling multiple types of data. Some of the data that are easily managed with this type of system include: employee records, student information, payroll, accounting, project management, inventory and library books. These systems are built to be extremely versatile.
Without database management, tasks have to be done manually and take more time. Data can be categorized and structured to suit the needs of the company or organization. Data is entered into the system and accessed on a routine basis by assigned users. Each user may have an assigned password to gain access to their part of the system. Multiple users can use the system at the same time in different ways.
For example, a company's human resources department uses the database to manage employee records, distribute legal information to employees and create updated hiring reports. A manufacturer might use this type of system to keep track of production, inventory and distribution. In both scenarios, the database management system operates to create a smoother and more organized working environment.