This document provides an outline for a course on computer applications in management. It covers topics like the definition of a computer, how computers work, comparisons between computers and humans, the importance and uses of computers. It discusses the advantages and disadvantages of computers, different computer generations and classifications. It also defines key terms like data, information and knowledge. Overall, the document provides a high-level overview of introductory computer concepts for a management course.

1. HARAMAYA UNIVERSITY
 Course Title: Computer Application in Management
 Chapter One: Introduction to Computer
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2. OUTLINES
 1.1 Definition of a Computer
 1.2 Working Principle of Computer
 1.3 Computers Vs. Human beings
 1.4 Importance of Computer
 1.5 Advantages and Disadvantages of Computer
 1.6 What Computers can do for us?
 1.7 Generations and Classification of Computers
 1.8 Data Processing
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3. DEFINITION OF A COMPUTER
 Computer is derived from the word compute, which means to calculate.
 Computer is an Electronic data processing device which is capable of performing
Arithmetic and Logical operations.
 It is a fast electronic device that processes the input data according to the
instructions given by the programmer/user and provides the desired information
as an output and store for the future.
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4. DATA, INFORMATION AND KNOWLEDGE
 Data: Facts and figures which relay something specific, but which are not organized in any
way and which provide no further information regarding patterns, context, etc.
 Data has no single meaning since it has multiple meanings.
 Information: data that are processed to be useful; provides answers to "who", "what",
"where", and "when" questions.
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5. DATA, INFORMATION AND KNOWLEDGE
 Knowledge: application of data and information; answers "how" questions.
 It is closely linked to doing and implies know-how and understanding.
 The knowledge possessed by each individual is a product of his/her experience,
and encompasses the norms by which he evaluates new inputs from his
surroundings.
 Wisdom: evaluated understanding.
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6. WORKING PRINCIPLE OF COMPUTER(HOW IT WORKS?
 In general term Computer is an electronic device that accepts the input, process the data and produces the output.
 Input: Input is the raw data entered into a computer from the input devices.
 Process: Process is the operation on the data as per the given instruction.
 Output: Output is the processed data given by computer after data processing.
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7. 1.3 COMPUTERS VS. HUMAN BEINGS
Human Computer
Can Think Cannot think by itself
Gets Mental Tiredness Never gets Tiredness
May do mistake Can’t do mistake by itself
Has limited speed Very High Speed
Has limited Memory More Amount of memory
Accuracy may be missing Never missing
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8. COMPUTERS VS. HUMAN BEINGS CONT…
 “Ability of a Human to do anything a computer can do but a computer cannot do everything a human can
do” is a true statement based on the following table.
Operations Performed
by a Computer
Corresponding Actions Performed by a Human
Hold instruction in internal storage Remember a set of instructions
Read data in machine readable form Read data in written or printed form and
memorize it or file it.
Perform arithmetic Computations Can perform arithmetic operations
Make comparisons Can make comparisons
Retrieve any data from internal memory or Remember data or retrieve data from file
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9. 1.4 IMPORTANCE OF COMPUTER
 Computers play a vital role for processing of data in an organization. Computer: help in
processing the volumes of data efficiently and accurately within a short time.
 Computer usage is growing and bounds in business, industry, government, colleges, schools
and other places.
 The offices where we work, the stores in which we shop, the schools we attend, the banks
that handle our money, even the device we use in our homes are being radically altered by
computers.
 Computers are now used in all aspects of education, both administration and teaching
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10. COMMON CHARACTERISTICS OF COMPUTERS
 1. Fast: A computer is so fast that it can perform the given task (arithmetical or logical) in
few seconds as compared to man who can spend many months for doing the same task.
 2. Accurate: While doing calculations, a computer is more accurate than man can make
mistakes in calculations but a computer does not make mistakes, if it is provided accurate
instructions.
 3. Diligence: A computer does not suffer from the human traits of tiredness and boredom.
 4. High Memory: A computer has much more memory or storage capacity than human
being.
 5. No Intelligence: A computer is a machine and obviously has no intelligence of its own.
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11. 1.5 ADVANTAGES AND DISADVANTAGES OF COMPUTER
Advantages of computer:
 High Speed
 Accuracy
 Storage Capability
 Diligence
 Versatility
 Reliability
 Automation
 Reduction in Paper Work and etc.
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12. DISADVANTAGES
 No Intelligence Quotient( I.Q )
 A computer is a machine that has no intelligence to perform any task.
 Dependency
 It functions as per a user’s instruction, so it is fully dependent on human being.
 Environment
 The operating environment of computer should be dust free and suitable.
 No Feeling
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13. WHAT COMPUTERS CAN DO FOR US?(APPLICATIONS OF
COMPUTERS)
 Accounting:
 General Ledger preparation
 General Shops
 Airlines and Railways
 Time Keeping
 Reservation of Tickets
 Hospital
 Colleges and Universities
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14. CONT…
 Science: Scientists have been using computers to develop theories and to analyse and test the data.
 Education: Computers have also revolutionized the whole process of education.
 Medicine and Health Care: There has been an increasing use of computers in the field of medicine.
 Engineering/Architecture/Manufacturing: The architects and engineers are extensively using
computers in designing and drawings.
 Entertainment: Computers are finding greater use in entertainment industry.
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15. CONT…
 Communication: E-mail or electronic mail is one of the communication media
in which computer is used.
 Business Application: This is one of the important uses of the computer.
 Banking: Computers are extensively used in the field of banking and finance.
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16. GENERATIONS AND CLASSIFICATION OF COMPUTERS
Generation of Computers
From the start, computers have been developed through generations or stages,
each characterized by smaller size, more powerful and less expensive than its predecessor.
The generations of computers refer to the different stages or eras of technological advancements
in the field of computing.
Here are the commonly recognized generations of computers:-
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17. FIRST GENERATION (1940 – 1950)
 Computers of this generation were manufactured using vacuum tubes.
 These computers were highly unreliable as the vacuum tubes failed very
frequently.
 Punched cards were used for input and output.
 These computers were very huge in size, produced enormous amount of heat,
very slow and very, very expensive
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18. SECOND GENERATION (1950 – 1960)
 This second generation computer tended to be smaller in size, more reliable,
and considerably faster than first generation of computers.
 Magnetic cores and disk packs were introduced as storage devices.
 Programming languages like BASIC, FORTRAN, COBOL, etc. were used.
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19. THIRD GENERATION (1960 – 1970)
 Third generation computers were built with integrated circuits (ICs), which
further reduced their size, increased processing power, and improved efficiency.
 They also introduced the concept of operating systems and high-level
programming languages.
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20. FOURTH GENERATION (1970 – 1980)
 FOURTH GENERATION (1971 – Now)
 Fourth generation computers saw the development of microprocessors, enabling the
integration of entire central processing units (CPUs) on a single chip.
 This led to the creation of personal computers (PCs) and a significant increase in computing
power.
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21. FIFTH GENERATION(1980-PRESENT)
The fifth generation computers are characterized by advanced parallel processing,
artificial intelligence (AI), natural language processing, and expert systems.
They focus on solving complex problems, improving human-computer interaction, and
utilizing advanced technologies like quantum computing and neural networks.
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22. CLASSIFICATION OF COMPUTERS
 I. Classification of computer According to Purpose
A. General purpose computers
 A general purpose computer is one that has the ability to store different programs of
instructions
 Performs a variety of operations
 It is designed to do a wide variety of jobs rather than perform a specific activity.
 It is also called personal computers (PC’s)
 In general, Computers that follow instructions for general requirements such as sales
analysis, financial accounting, invoicing, inventory, management information etc. are called
General Purpose Computers.
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23. CLASSIFICATION OF COMPUTER ACCORDING TO PURPOSE
CONT…
 B. Special purpose computers
 Designed to perform one specific task
 Instructions is built into, or permanently stored in the machine
 Specialization results in the given task being performed very quickly and efficiently
 It is inflexible and cannot be easily used to perform other operations.
 In general, Computers designed from scratch to perform special tasks like scientific applications
and research, weather forecasting, space applications, medical diagnostics etc. are called Special
Purpose Computers. 23

24. CLASSIFICATION OF COMPUTERS CONT…
 II. Classification – Application wise
 Based on the application of computers for various purpose the computers can
be classified into three types:
 Analog computers
 Digital computers
 Hybrid computers
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25. ANALOG COMPUTERS
 Analog computers are special purpose computers that represent and store data in
continuously varying physical quantities such as current, voltage or frequency.
 These computers are programmed for measuring physical quantities like pressure,
temperature, speed etc. and to perform computations on these measurements.
 Eg. Thermometer: It is a simple analog computer used to measure temperature.
 (ii) Speedometer: Car's speedometer is another example of analog computer where the
position of the needle on the dial represents the speed of the car. 25

26. DIGITAL COMPUTERS
 The computers that use digital signals to calculate and transmit data are called Digital
Computers.
 The word digital is derived from the word “digit”. The word digit simply means numeral.
 The digital signal has only two states in which it can be represented.
 They are ON and OFF or HIGH and LOW or 1 and 0. Digital data is calculated using the
concept of “counting values”.
 In general, Digital computers are mainly general purpose computers that represent and
store data in discrete quantities or numbers.
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27. HYBRID COMPUTERS
 Computer systems that use both analog and digital mechanisms are called Hybrid
Computers.
 Desirable features of analog and digital computers are combined to develop a hybrid
computer.
 To sum up, these computers store and process analog signals which have been converted
into discrete numbers using analog-to-digital converters
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28. III. CLASSIFICATION – CAPACITY AND SIZE OF MICROPROCESSOR
 Computers are also classified into different types mainly based on processing
and storage capacity.
 Microcomputers(PC) – are the smallest category of computer and also called
as Personal Computers (PCs). These computers that can either fit next to a
desk (called the Desktop) or can be carried around (called the Laptop and
Notebook.
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29. MICROCOMPUTERS(PC)
Microcomputers are used for general purpose business applications such as invoicing,
accounting etc.
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30. MINICOMPUTERS
 Minicomputers are bigger in size, faster in speed, have more memory capacity and
expensive when compared to the microcomputers.
 Minicomputers can be used for general purpose applications and as a server for small
networks.
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31. MAINFRAME
 Mainframe computers are more powerful in processing, faster in speed, have large
memory, and very expensive when compared to the micro and mini computers.
 The word mainframe refers to mean the “Central Processor”.
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32. SUPERCOMPUTERS
 Supercomputers are one of the fastest computers currently available.
 Supercomputers are very expensive and are employed for specialized applications that require
immense amount of mathematical calculations (number crunching).
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33. DATA PROCESSING
Data Processing can be defined as ‘one or more operations performed on data to achieve a
desired objective is called as Data Processing’
 Is the activity of converting raw facts [ data ] into information.
 Therefore, Information is data that have been processed using the data processing functions.
 Difference between DP and IP IS ‘In data processing the various functions apply to raw data,
But, in information processing the same functions apply to information ‘
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34. FUNCTIONS OF DATA PROCESSING
 Data Collecting
 Data Recording
 Sorting
 Classifying
 Calculating
 Storing and Retrieving
 Summarizing
 Communicating
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35. PROCESSING METHODS
 Information system uses two Processing Techniques
 Batch Processing
 Real Time Processing
 Batch processing:
 Where data to be processed is accumulated over a period of time.
 The accumulated batch of transaction is processed periodically.
 Otherwise, Gathers transactions and saves them for processing all at once.
 Very efficient but always delay in Processing. 35

36. ONLINE PROCESSING [ ALSO ONLINE REAL-TIME PROCESSING ]
 Each transaction is processed as soon as it is received.
 There is no waiting to accumulate.
 Such as, a computerized Reservation system where an immediate responsible is useful.
 Otherwise, by contrast, Process transaction as they occur, Ex: Air Line reservation system
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37. TIME SHARING
 Time Sharing
 Is the concurrent use of a single computer system by many users, each of which has an I/O
device and can access the same computer at the same time.
 The computer gives each user a small, but frequently repeated, since of the time, so that each
user gets almost immediate response.
 Therefore, if a computer is shared by many unscheduled users simultaneously it is called
TIME SHARING
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