The significance of database normalization in data management lies in its ability to minimize data redundancy and improve data integrity. Normalization involves organizing database tables to reduce duplication of data and eliminate anomalies during data operations. This process enhances database efficiency, making it easier to maintain, update, and retrieve information. By ensuring that data dependencies are properly enforced, normalization also improves query performance and supports better overall functionality of the database system. Ultimately, well-normalized databases facilitate more reliable data management practices.