What is the difference between an MBA and PGDM? Which one do you choose?
After graduation from any stream, students think about further studies. Many students have confused what to choose to MBA or PGDM. The confusion further enhances when different universities and colleges offer the different degree with a different syllabus. While many believe that there is a conflict between the two, few also perceive both at the same point, with just a difference in the name. In this situation, I will try to articulate you which are the best, whether to choose MBA over PGDM or to choose PGDM over an MBA. We will also cover, which is the best for today industry specialization.
As per law, only a university can offer degree Course like (graduation and PG course) B.tech,B.com, BBA, MBA, M.tech etc.
So, what is the difference between an MBA and PGDM? Plainly put, Masters in Business Administration or MBA is a degree course offered by the Universities (both Government and Private) and Colleges affiliated to these Universities. Post Graduate Diploma in Management (PGDM) is a Diploma course of study offered by B-schools/Colleges that are acknowledged by the Government of India’s nodal body for technical education – All India Council for Technical Education (AICTE).
PGDM: PGDM stands for Post Graduate Diploma in Management. It is provided by an independent body, that means if an institute is not affiliated with a University then it cannot give MBA degree. Even IIMs and XLRIs can not offer an MBA degree, rather they provide PGP Diploma or PGDM since they are sovereign and autonomous bodies. The primary ground why the post graduation course named as PGDM because of its an autonomous body (not associated to any university). Even premium colleges like IIM’s, XLRI’s offer PGDM course, not MBA degree. Yet, with the passing of IIM Bill 2017, IIMs is expected to offer MBA in coming years.
AICTE approved colleges also offer PGDM and not an MBA.
MBA: MBA stands for Master of Business Administration, it is a two-year management plan. Only Universities can provide MBA degrees. It could be foreign university or Indian University.
We want to stress that while deciding between an MBA or PGDM, what is most important for you as a student is to understand your personal goals. While I may say that PGDM courses are more Industry relevant, up to date as compared to MBA courses; some of the University MBA Programs have earned a huge brand value in India. Such MBA programs which have earned repute brand image. While in that respect are vast similarities in the curriculum of both MBA and PGDM, there are finer points of dispute. While MBA focuses more on theoretical aspects of management and is more exam-oriented, PGDM has a focus on building soft skills and is an industry-oriented. It readies you for the job marketplace. If you are interested in a corporate job and career, you should choose a B-school/ MBA Colleges based on their Ranking, Curriculum, and Placements, and NOT by the grade or diploma they offer. Corporates don’t treat MBAs or PGDMs differently. They only require candidates that can do well with the task. So curriculum and staff, and not a degree or diploma, are most important.
An MBA will serve in acquiring technological skills and business knowledge, whereas a PGDM will prepare graduates for senior level placements in industry and paves the way for a strong corporate career.
It has been noted that most MBA courses have lower tuition fees as compared to PGP or PGDM courses. This may be so because mostly government approved universities offer MBA degrees.
PGDM is equal to MBAs because if PGDM is to be an equivalent to MBA then the college offering the PGDM course must receive accreditation from AIU (The Association of Indian Universities).
Both PGDM and MBA are equivalent in terms of qualification. It does not matter what you select. The only matter is from where you did your MBA OR PGDM course. Do only from reputed college or university. I have seen many students, who did their MBA from low tier college and later they complain, MBA has no worth.
Every course has its own value. But in case if you are doing MBA OR PGDM, then do from a reputed college. Learn special industry-oriented skills, enhances and groom your overall personality.
Ask any questions and guidance, please ask through comments sections.