CHAPTER FOUR

FILE AND DATABASE MANAGEMENT

4.1 THE FOUNDATION OF DATA CONCEPTS
Data stored in paper-based, manual filing systems are organized into characters, data elements,
records and files. Data stored in a computer based, electronic filing system are usually stored in
their most elementary form: binary digits or bits. These bits are then organized into characters
(or bytes), the bytes into data elements, the data elements into records, and the records into files
and related records making up a database.

There are two approaches to the storage of data in a computer-based system. The first approach
is to store the data in individual files each unique to a particular application. The second is to
build databases, which is a collection of interrelated files intended for use in many different
applications. These concepts are briefly explained in the following section of this unit.

4.2. Conventional Files

File is a collection of similar records. Examples include a customer file, order file, and the
product file. In most organizations, many existing information systems and applications are built
around conventional files. Conventional files will likely be in service for quite sometime because
it has the following advantages. Firs, it is relatively easy to design and implement. Because they
are designed usually for use with a single application or information system such as payroll. If
the end user’s output requirements for that system are understood, it is easy to determine the
data that will have to be captured and stored to produce those outputs and define the best file
organization for those requirements. Another advantage of conventional files is processing
speed. They can be accessed easily by the application programs.
Disadvantages /problems of conventional file
Although the traditional, file-oriented approach to information systems is still widely used, it
does have disadvantages. Some of the problems associated with such traditional file organization
are the following:
1. Data Redundancy: often identical data are stored in two or more files. For example each
employee’s name, ID. No., department are stored in both the payroll and personal files.
The presence of duplicate data in multiple data file increases data editing, maintenance,
and storage costs.

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 2. Program-Data Dependence. Under the traditional, file-oriented approach, there is a
close relationship between data stored in files and the software programs that update and
maintain those files. Any change in data arrangement or format requires a change in all
the programs associated with those files. Consequently, for each of the application
programs that the programmer writes or maintains, he/she must be concerned with data
management. There is no centralized executions of the data management function; data
management is scattered among the application programs.
3. Inflexibility: Traditional file system can deliver routine scheduled reports after
extensive programming efforts, but it cannot deliver ad hoc reports or respond to
unanticipated information requirements in a timely fashion.
4. Poor Security: Because there is little control or management of data, access to and
dissemination of information are virtually out of control. What limits on access exist tend
to be the result of habit and tradition, as well as of the sheer difficulty of finding
information.
5. Lack of Data Sharing and Availability: the lack of control over access to data in this
confused environment does not make it easy for people to obtain information. Because
pieces of information in different files and different parts of the organization cannot be
related to one another, it is virtually impossible for information to be shared or accessed
in a timely manner. To overcome these problems one may is adopting a database
approach.
4.3 Types of Files
Files generally fall in to two categories: file containing data (offer referred as data files) and files
containing software instructions (referred as program files).
Data files, in turn, tend to be categorized according to how they are used as:
a. Master File: contains data, which is stored in computer usable form for lengthy
periods of time, after which it is used for retrieval and is updated during
processing. Example includes payroll, material inventory, finished goods, work- in-
process, accounts receivable, and accounts payable.
b. Transaction file: contains records used to change or update master files. This is a
data, which is stored and retained only until it is time to process. For example, a
change in an employees address is a transaction to the payroll master. Technically,
the transaction files are use only with batch system.
c. Report File: Contains data that is used to produce reports in organizations where
the reports to be produced are so immense.
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 d. Output File: Is a file which is created to store output information
e. History File: is a file created to collect data for long term reporting purposes.
f. Backup File: are copies of other types of files that are made to ensure that data
and programs will not be lost if the original files are damaged or destroyed.
g. Table Files: contain relatively permanent information that is used to facilitate
processing. They are used to store tabular data that changes relatively
infrequently. An example is the price rate of a product.
4.4 File Access Methods
The method by which a computer program will read records from a file is known as file access.
To access an individual record, the record must be uniquely identified. This can be done through
a primary key, which is a field that uniquely identifies the record and thus separates it from all
other records in the file. For example, ID.NO. is a primary key in a student’s record. Records may
also be accessed through secondary keys. Any field in a record can be a secondary key like the
name of the student, and section.
Every computer program will access a file in on of the two ways: sequentially or directly.
 The Sequential access method starts reading and writing with a record in the file
(normally the first) and precede one record after another-until the entire file has been
processed. This is used when a program needs to look at a relatively high percentage of
all records in a file. Ex Invoice processing, payroll processing. Sequential access in
normally required for batch transaction processing.
 The Direct Access method- also called random access-permits access to any record in
a file without reading all previous records in that file. This is appropriate for programs
that need to access only one or a few records in a file (queries, for example)
4.4.1 File Organization
Computer systems store files on secondary storage devices. Records can be arranged in several
ways on storage media. The arrangement determines the manner in which individual records
can be accessed or retrieved. File organization defines how records in a file are related to one
another. Different file organizations are designed to optimize performance for one or both file
access methods. Files could be organized in either of the following ways.
i. Sequential File Organization. It is a method of storing records in either in the order they
are entered in to the file or ascending order by primary key and the records are retrieved
in the same physical sequence in which they are stored. This type of file organization is
ideal for situations in which most of the records in a file need to be accessed for
processing such as producing payroll. Such a search can be time consuming when file is
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 large. Therefore, this organization is not practical for an application that requires
immediate access to individual records.
II. Direct File Organization. It is a method of storing records so that they can be
accessed in any sequence without regard to their actual physical order on storage
media. This method allows immediate, direct access to individual records on the file.
This data retrieval method is best suited to situations in which only a few records in a
file need to be accessed in no particular sequence, example is an Airline reservation.
There are a number of ways to access records directly in no particular order. The
most common approach is to use a unique element of data called a Key Field or Key-
contained in each record as a basis for identifying the record and for determining
which storage location on the disk the record should be stored in or retrieved from.
To determine where to store a record so it can be retrieved directly, the computer
uses a formula and performs a mathematical calculation-called Hashing-on the key
field value.
III. Indexed File Organization: To be able to access stored data in either a sequential or
direct fashion, a third storage and retrieval methodology was developed that uses indexed
file organization. This method is used almost exclusively with direct access
microcomputer storage devices to provide maximum flexibility for processing and has
proven to be the most flexible for business applications. In this approach a separate file is
used to indicate the address of the records stored in the primary file. The file that stores
the addresses is called an index file. This index functions somewhat like the index at the
back of a book. The index file, which, could be more than one and which contains the
records’ address location, is checked by the computer to retrieve the file.
This file organization which can not be done on tape, allows efficient regularly scheduled
processing of large batches of data and irregular updates with only a small amount of input.
However, indexed storage and retrieval is slower than direct access, and the hardware and
software needed for indexed file organization are more expensive than with sequential or direct
access organization. In addition, it makes less efficient use of storage space.
IV. Indexed Sequential Organization: this is a special variation on the indexed file
concept. It accommodates a situation where by some programs require sequential
access while others need direct access. Here records are physically arranged in
sequence to allow sequential access. However, the file also contains an index of
record keys and their physical addresses that can be used to provide semi-direct

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 access to records within the sequential file. Each program determines how it wants to
access the records, sequentially or directly (via the index).
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Several factors must be considered in determining the best file organization for the particular
application: file activity, file volatility, file size, and file query requirements.
Information processing modes – the preceding section discussed the basic types of file
organization and record access methods. There are also two ways to process data – batch and
on-line.
A. In batch processing, transactions are accumulated into batches for periodic processing,
such as daily, weekly, or monthly. The batch inputs are processed to update databases
and produce appropriate outputs.
B. Online processing - Majority of systems have slowly evolved from batch processing
to on-line or real-time processing. On-line inputs and outputs provide for a more
conversational dialogue between the user and computer applications. They also provide
near immediate feedback in response to transactions, problems, and inquiries. In today’s
fast-paced economy, most business transactions and inquires are best processed as soon
as possible. Errors are identified and corrected more quickly because there is no time
lapse between data entry and input. Furthermore, on-line methods permit greater human
interaction in decision-making.
4.5. Database Environment
The purpose of an information system and its sub-systems is to provide users with timely,
accurate and relevant information for decision making. This information is stored either in a
paper based manual system or computer files. When they are properly arranged and
maintained, users can easily access and retrieve the information they need to make an informed
decision.
Basic data storage: Data stored in a computer-based electronic filing systems are usually stored
in their most elementary form; binary digits, or bits/bytes and progress to characters, fields,
records, files and data base. In ascending order of complexity, the structures of the information
system data hierarchy are as follows.

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 Hierarchy Example

Bits
1

Bytes/character
10100001 (Letter A)

Fields Abebe (name field)

ID.NO Name Course Grade

Records GSR/4304/94 Abebe Mgmt 211 B
mu
ID.NO Name Course Grade
Files GSR/4304/94 Abebe Mgmt 211 A
GSR/4305/94 Abel Mgmt 211 B

Database

These data elements are described as follows.

1. Bits: - are the smaller units of data a computer can handle. Bit is the short for binary digit
and has a value of 0 or 1. 0 represents its absences and 1 represents the presence of
electronic signal
2. Byte or character. The ability to represent only binary information in a computer system
is not sufficient for business information processing. Numeric, alphabetic, and a wide
variety of special characters such as dollar signs, question marks, and quotation marks
must be stored in this type of system. In a computer system, a character of information is
called a byte. Byte is the most logical data element, which consists of a single alphabetic,
numeric or other symbols. Example: Letter “A”, number one (1) or any other symbol
represents a character. In other words 8 bits represents a single character or 1 byte.
3. Field: - The next higher level of data is the field or data item. A field consists of a grouping
of characters describing “one attribute” of an entity (place, person, property etc.).
Example, the grouping of alphabetic characters in a person’s name forms a name field
and the grouping of numeric characters in sales amount forms a sales amount field.
[

4. Record - represents a collection of attributes that describe an entity. In other, words,

related fields of data are grouped to form a record. For example, Name, ID No., sex,
Course taken form students record in the university, which consists of data fields such as
student’s name, ID. No., Grade, courses, year of enrollment etc.

ID.NO. Name Course taken Grade Department

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 GSR/100/95 Abebe Kebede Marketing A+ Management
Information system
[[

5. File/ data set: - is a group of related records. For example, an employee file would
contain the records of the employees of an organization.

Files are usually classified by the application for which they are primarily used such as
payroll file, an inventory file, or the type of data they contain, such as document file or
program file.

Payroll File

ID.NO Name Education Salary Year of Employment

BC/20/95 Selam MA Br. 5000 1995

BC/25/90 Yonas Diploma 1500 1990

BC/30/92 Rahel BA 300 1992

6. Database: - is an integrated collection of logically related record or files. A database

consolidated records previously stored in separate files in to a common pool of data records
for many application.
4.6 DATABASE MANAGEMENT

Definition: Database is collection of data organized to serve many applications efficiently by

centralizing the data and minimizing redundant data. Rather than storing data in separate
files for each application, data are stored physically to appear to users as being stored in
only one location. It serves single database services multiple applications.

4.6.1. Databases Design and Creation

Perhaps the most important aspect of a database is its initial design and creation. At this point,
the managers who will use the information must be able to communicate effectively with those
people responsible for providing the information so that the resulting database will be
informative and useful. The design and creation of the database should be user oriented and
focused on helping the organization achieve its objectives while satisfying its target market (s).
The design should include both internal records and external marketing intelligence and meet

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the requirements of the information user and provider for making strategic and tactical
decisions.

Thus, the database management approach involves three basic activities:

 Updating and maintaining common databases to reflect new business transactions and
other events requiring changes to an organization’s records.
 Providing information needed for each end user’s application by using application
programs that share the data in common databases.
 Providing an enquiry/response and reporting capability through a database management
system (DBMS) package so that end users can easily interrogate databases, generate
reports, and receive quick response to their ad hoc request for information.
4.6.2 Database Structures

The relationships among the many individual records stored in the databases are based on one
of the several logical data structures or model. Database managements system packages are
designed to use a specific data structure to provide end users with quick, easy access to
information stored in databases.

The conventional database managements uses one of the three principal logical database models
for keeping track of entities, attributes and relationships. These are:

i. The Hierarchical Structure

This model presents data to users in a tree like structure of in a form of hierarchy. A record is
subdivided in to segments that are connected to each other in one-to-many parent-child
relationships. The data element or record at the highest level of the hierarchy is called the root
element. Any data element can be accessed by moving progressively downward from the root
and along the branches of the tree until the desired record. Early mainframe DBMS packages
used the hierarchical structures.

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For example AAU data element given below:

AAU
Root

1st Social Science Others Post Graduate

Child
FBE
Faculty Studies

2nd child Mgt Dept Acct Dept Econ Dept MBA RLDS Others

ii. Network Data Model/Structure

It presents more complex logical relationships. It depicts data logically as many to many
relationships. In other words, parents can have multiple children, and a childe can have more
than one parent. This model is more flexible than the hierarchical structure in support of
databases of many types of business operations. However, because its relationships must be
specified in advance, the network model cannot easily handle ad hoc requests for information.

Example: Student-course relationships in a university. A student takes many courses and a

course has many students. N.B. S1, S2, … Sn stands for student 1, student 2, student n.

Course 1 Course 2 Course 3

S1 S2 S3 S4 S5

iii. The Relational Model

This is the most recent of the three data base structures. It was developed in an attempt to
simplify the representation of relationships among data elements in large databases. The
relational model represents all the data in the database as simple two-dimensional tables called
relations/tables. This allows end users to easily receive information in response to ad hoc
requests. The major limitation of relational structure is that database management systems

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based on it can not process large amounts of business transactions as quickly and efficiently as
those based on the hierarchical and network models, in which all the data relationships are
defined in advance. In this model each raw represent records and the columns represent data
fields.

Example1: Employee Address Table

Emp. ID Employee Father Sex Birth Hire Telephone

Name Name Date Date
E001 Bruk Mulugeta M 11/6/79 2001 615141
E002 Abebe Mesfin M 10/7/69 1998 615600
E003 Tigist Lemma F 4/01/80 2003 151516

Example 2: Payment Table

Emp.ID Salary
E001 Br. 5000
E002 2000
E003 1500

The strength of this model is that, it can relate data in any one file or table to data in another file
or table as long as both tables share common data elements. It is flexible and provides a capacity
to add new records without disturbing existing programs and applications.

In relational database three basic operations are used to develop useful sets of data:
 Select: - Create a subsets consisting of all records in the file that meet stated criteria.
Example: Select these students whose exam grade greater than 90.
 Project: - Operation creates a subset consisting of columns in a table, permitting the user
to create new tables that contain only the information required.
 Join: - Operation combines relational tables to provide the user with more information
than is available in individual tables.
4.3.4. Database Management System (DBMS)
DBMS is simply software that permits an organization to centralize data, manage them
efficiently, and provide access to the stored data by application programs. DBMs act as an
interface between application programs and the physical data files. It is a collection of software
programs that:

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  Store data in a uniform way
 Organizes the data into records in a uniform way
 Allows access to the data in a uniform way
a) Purpose/benefits of a DBMS
Database management system, in general, reduces/avoids the problems associated with the
traditional the processing. Specifically its benefits include:
1. Reducing the Complexity of the organization information system environment by central
management of data, access, utilization and security.
2. Reducing data redundancy by eliminating all the isolated files in which the same data
elements are repeated.
3. Te eliminates data confusion by providing central control of data creation and definitions.
4. Reducing program-data dependency by separating the logical and physical aspects of
data.
5. To enhance flexibility of information systems by permitting rapid and inexpensive ad hoc
queries of very large pool of information.
6. To increase access and availability of information.
7. Security and privacy can be controlled.
b) Limitation of Database

The limitations of database management arising from its increased technological complexity.
Thus, database approach poses problems in data resource management. Some of these problems
are:

 Developing a large database and installing DBMs can be difficult and expensive.
 More hardware capacity is required.
 If an organization relies on one central database, its vulnerability to errors, frauds and
failures increases.
 Longer processing times may result from high-volume transaction processing
applications.
c) Components of Database Management System (DBMS)
DBMS has three components. These are:
1. Data Definition Language - is the formal Language used by programmers to specify the
content and structure of the database. It defines each data element as it appears in the
database before that data element is translated in to the form required by the application
programs.

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 2. Data manipulation language- is a specialized language that is used in conjunction with
some 3rd or 4th generation programming languages to manipulate the data in the
database. This language contains commands that permit end users and programming
specialists to extract data from the database to satisfy information requests and develop
applications. The most prominent data manipulation language today is structured, query
language, (SQL).
The basic form of an SQL query is
Select... From ...Where...

Example: Select: Name and ID.No

From: Student Address
Where: ______________
3. Data dictionary. Data dictionary is a computer based catalog or dictionary containing
data about data. It is an automated or manual file that stores definitions of data elements
and data characteristics such as name, usage, physical representation, ownership,
authorization, security, and other characteristics of an organization’s databases.

4.3.5. Management Requirements for Database System

Much more is required for the development of database systems than simply selecting a logical
database model. The database is an organizational discipline, a method, rather than a tool or
technology. It requires organizational and conceptual change. Without management support and
understanding, database efforts fail. They should view data as an important resource that they
must learn to manage properly to ensure the success and survival of their organizations. But this
is easier said than done. Database management is an important application of information
systems technology to the management of a firm’s data resources. However, other major data
resource management efforts are needed in order to offset some of the problems that can result
from the use of a database management approach. These are:

1. Data Administration. Database system requires that the organization recognize the
strategic role of data and information and begin actively to manage & plan for
information as a corporate resource. Organization should develop data administration
function with the power to define information requirements for the entire company and
with direct access to senior management. This involves the establishment and
enforcement of policies and procedures managing data as strategic corporate resource.
This means administering the collection, storage, and dissemination of all types of data
in such away that data become a standardized resource available to all end users in the
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 organization. The focus of data administration is the control of data in support of an
organization’s business functions (marketing, finance, operation etc.) and strategic
business objectives.
2. Database Administration. Database administration is an important data resource
management function responsible for the proper use of database management
technology. It has more operational and technical responsibilities than other data
resource management functions. These include responsibilities for:
- Developing & maintaining the organization data dictionary
- Designing & monitoring the performance of databases
- Enforcing standards for database use & security.
Database administrator works with system analysts, programmers and end users to provide
their expertise to major systems development projects.
3. Data Planning - is a cooperate planning and analysis function that focuses on data
resource management. It includes the responsibility for developing an overall data
architecture for the firm’s data resources that ties in with the firm’s strategic mission
and plans, and the objectives and processes of its business units. Information policy and
data architecture for the firm’s data resources that ties in with the firm’s ties in with the
firm’s strategic mission & plans, and the objectives and processes of its business units.
Data planning is done by organizations that have made a formal commitment to long-
range planning for the strategic use and management of their data resources.

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