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  • MBA vs. PGDM: Understanding the Difference
    23 Sep 2020

    MBA vs. PGDM: Understanding the Difference

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    With the rise of corporate culture as well as encouragement to entrepreneurship in India, more and more students are opting for management studies. There is no dearth of institutes and universities offering postgraduate programs in management. In fact, Delhi & the NCR regions have close to 3,500 management institutes offering a wide range of courses all under the same academic bracket – MBA in Delhi. However, Indian students often find themselves faced with the choice of two such courses, namely MBA and PGDM.

    Candidates are often unsure about the difference in titles as well as the content. This leads to much confusion regarding which course one should opt for, and why. Here’s your guide to understanding the difference between the PGDM and MBA courses in India.

    Decoding the Terminology

    Although both courses essentially train you for managerial and leadership positions, there are quite a few technical differences. Perhaps the most striking among these are the formal names of each. What is MBA? – MBA, short for Master of Business Administration, is a post-graduate degree. On the other hand, PGDM, which stands for Post Graduate Diploma in Management, is a diploma.

    What is MBA?

    MBA or Master of Business Administration is a Post Graduate Degree in Management offered by most of the management colleges and universities across the world. As MBA is a master’s degree, only recognized institutions affiliated to reputed universities can offer a degree in Business Administration. Such universities follow a single curriculum designed for the course while offering bachelors, masters or doctorate degrees.

    What is PGDM?

    PGDM or Post Graduate Diploma in Management is a diploma course and not a degree. PGDM can also be offered by autonomous institutes (not affiliated to any university). Such institutes cannot offer an MBA degree. All India Council for Technical Education (AICTE) approves colleges to offer PGDM course.

    Let’s explore the difference PGDM and MBA:

    MBA vs. PGDM: Affiliation and Accreditation

    As MBA is a degree, it can only be offered by universities and institutes affiliated to universities. Their curriculum is accredited by the University Grants Commission (UGC). On the other hand, autonomous bodies like IIMs are not authorized to offer a degree. Therefore, their course, the Post Graduate course in Management is recognized as a diploma and is regulated by the All India Council for Technical Education (AICTE).

    MBA vs. PGDM: Academic Differences

    As mentioned earlier, while both courses aim to train you in management and administration, their approach differs significantly. While an MBA course tends to be more theoretical, a PGDM focuses on the technical aspects, providing exposure to real-life business situations. Also, a PGDM is very different than a one-year PGP offered by many private institutes all across India. Another advantage of a PGDM is, as it is offered by autonomous institutes, the curriculum can be upgraded more frequently to include the new changes and trends in business management.

    However, if you wish to pursue higher education abroad, a PGDM is considered to be a diploma, while a university-affiliated MBA is counted as a degree, giving you a better standing.

    MBA vs. PGDM: Curriculum

    Though MBA and PGDM courses may not differ vastly. We all understand that management is a dynamic sector, and a lot of changes happen every day. Having the same curriculum year by year can set the students back. Due to the rigid stance of most of the universities, MBA syllabus often doesn’t change as per industry requirements.

    On other hand, PGDM courses have no such concerns. Because of their autonomous nature, institutes are very sensitive to the changing demands of the industry. The curriculum of PGDM changes to ensure students are up to date with current industry trends. PGDM courses are much more adept in being industry-ready.

    How it Impacts You Professionally?

    In India, as well as overseas, both MBA and PGDM courses are regarded as having equal value when it comes to career prospects. Having a PG diploma instead of a degree is certainly not considered to be a drawback. It is the reputation of your university or institute and more importantly, your professional capabilities that truly matter.

    Now that you have a better understanding of the differences between the two programs, evaluate the courses and choose as per your academic and professional preferences.

    Frequently Asked Questions (FAQs)

    Is MBA same as PGDM?

    No, MBA and PGDM are two different courses. MBA is a degree course while PGDM is a diploma course. PGDM course is generally offered by colleges like the IIMs, which are not affiliated with recognized universities.

    Is PGDM a professional degree?

    PGDM is a professional qualification for the future leaders looking to advance their skillsets in business. PDGM courses aim to develop initiative, leadership and individual excellence needed for successful careers.

    Which is better PGDM or MBA?

    The focus should be on the institute providing the courses, the curriculum, faculty & pedagogy. Both MBA & PGDM are very similar in a lot of ways, so what is better will depend on each individual and their goals.

    What is the salary of a PGDM?

    The average starting salary of a PGDM is around 8 lakhs p.a. if he/she pursues the PGDM diploma from a reputed institute.

    Is PGDM valid for a government job?

    The students obtaining PGDM from autonomous B-schools not affiliated to All India Council for Technical Education (AICTE) are not eligible for government jobs.

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