7 Advantages and Disadvantages of File Management System | Limitations & Benefits of File Management System

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7 Advantages and Disadvantages of File Management System | Limitations & Benefits of File Management System

7 Advantages and Disadvantages of File Management System | Limitations & Benefits of File Management System
What is File Management System ?

File management system is a technique used by the computers to store data in a storage medium. Using this process, people do not have to follow the traditional methods of papers to manage data. 

Why is File Management System used ?

Generally these file systems are designed to handle various files with different efficiencies. Especially, more and more businesses are embracing FMS solutions to overcome the problems they face while managing records. Based on the type and category, each file in FMS is grouped accordingly. So that, users could easily identify the data they are looking for. 

Despite the benefits file management system offers, it is still with some flaws. For knowing how the system is effective in managing records, these advantages and disadvantages needs to be considered.

In this article, I will be mentioning about 7 Advantages and Disadvantages of File Management System | Limitations & Benefits of File Management System. Through this post, you will know the pros and cons of using file management system.

Let's get started,

Advantages of File Management System

1. Cost Effective

File management system is extremely cost effective since it is a digital filing system. Whatever the type of document that needs to be stored as a paper can be in the form of digital. Therefore, there is no cost involved in building rents, purchasing cabinets and physical papers. 

And also, this type of management greatly reduces the space that the office occupies for the documents.

2. Security

The traditional method of storing files cannot match the level of security provided by the file management system. In fact security is one of the reason why many organizations prefer to use file management system. The documents stored in the file management system is protected using authentication methods like username and password. 

Additionally, all the data is encrypted which makes sure a document is confidential.

3. Reliability

The data that is stored in a file management system is far more reliable than physically storing it using papers and files. Unlike traditional methods of storing data, files here is very less likely to undergo damage or destruction. Any damages from nature or handling can be completely avoided in a file management system. 

All the data of the users are stored inside the servers. Therefore, users can ensure that their documents are secured from potential damages.

4. Data Sharing

Data sharing is one of the key features of a file management system. FMS allows very efficient way of sharing data with each and every person. The same data that is stored on files can be shared with multiple users simultaneously. 

5. Data Retrieval

Using file management system means that it will be very easy to retrieve data. File management system follows a digital approach that provides access to required data within few minutes. Users don't need to search copies of documents manually here. Thus, there is very less amount of time spent for data retrieval.

6. Data Backup

In case of a failure, file management system provides a seamless way for backing up data. For this purpose, computers on default offer functionalities. However, if needed there can be also third party application programs be used.

7. Environment Friendly

Due to the fact that file management system follows a digital system and there is no paper works involved, it can be said that this technique is more environment friendly. 

By green practices, not only the cost of an organization is reduced, it can increase the overall image of a company. As a result, it can provide tax benefits and other advertising opportunities as well.

Disadvantages of File Management System

1. Redundancy

Redundancy is a kind of duplication that occurs if the same type of information exists in different locations. In this event, there is a possibility of memory wastage to take place resulting in higher storage costs.

2. Inconsistency

Due to the effect of data redundancy this often leads to data inconsistency. Which means that the same copies of data located in different places contain different values. For preventing this, there should be paper listing among different files.

3. Accessibility

Accessing data in file management system is not an easy process. It is not convenient as it should be. Whenever a user needs to access an information using different approaches, they must execute a special program.

4. Integrity

The data that is present on a file management system can get integrated. Meaning it is not correct and consistent. Most often this is caused in the presence of consistency constraints. Constraints are imposed by the programmers using programming codes. If the integrity continues, it can make the process of adding new constraints to be difficult.

5. Atomicity

Atomicity refers to the data that is incomplete. This often happens if the data is either completely entered or not entered at all. For an example, your system could fail in the middle of a transaction leading to data atomicity. Unlike in database management system, it is difficult to ensure atomicity in file management system. 

6. Data duplication

Since data is stored in more than one location, there is a possibility of data duplication to take place. If file management system undergoes data duplication it will cause problems in the storage space. These duplications are difficult to correct due to the fact that they are independent to each other. Hence, it requires manual correction which can take time and effort.

7. Data isolation

If the data is stored in different locations, this could essentially mean that they are isolated in file management system. Under this circumstances, the formats of each file can vary significantly. As a result, extracting data from files can be difficult as it requires complex programming.


  1. A resigned monetary organizer, James Leitz has a MBA (finance) and 35 years of investing experience.

  2. A resigned monetary organizer, James Leitz has a MBA (finance) and 35 years of investing experience.


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