Database Normalization is the process of organizing the data in a database. This includes creating tables and establishing the relationships among them according to rules designed both to protect the data and to make the database more flexible by eliminating redundancy and inconsistent dependent.
Redundant data wastes disk space and creates maintainance problem. If the same data exists more than one place then whenver we need to update or change it, we have to make those changes all the places.
Now what is inconsistent dependency?..........In very simple terms our database is made in such a way or by such relationship we are not able to find or access the relevant data coz path to find that data is missing.
(Source: http://support.microsoft.com/kb/283878 )
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