What is the difference between PGDM and MBA?

What is the difference between PGDM and MBA?

It is not always clear to students what the difference between a PGDM and an MBA is since both are equally well-known and coveted in the spectrum of management education.

A Post Graduate Diploma in Management (PGDM) or Post Graduate Programme in Management (PGPM) or Masters in Business Administration (MBA) are both management courses at Master’s level. Both these courses have a commercial orientation. These similarities are bound to give rise to confusion when it comes to making a choice between the two.

An MBA and a PGDM both are business-oriented courses meant to equip a person with the skills necessary to move up the ladder and enter into the arena of management.

While both courses result in the same outcome in terms of the employment, there are of course subtle differences present.

Below you will find 5 major differences between an MBA and PGDM:

1. Degree and Diploma

The most obvious technical difference is the fact that a PGP or PGDM course is a Diploma course while MBA programmes are a Degree course.

Many students live under the impression that a Diploma doesn’t hold the same value as a Degree. But this is not true, because all the IIMs and other Top B-Schools such as XLRI, Jamshedpur, and SP Jain Institute of Management and Research, Mumbai, offer PGP or PGDM courses too.

Most of these institutes being autonomous and not affiliated to any University conduct their own management courses as well.

Last year, the Government passed the IIM Act, which allows the IIMs to offer Degrees instead of Diplomas as well.

2. Syllabus

Most of the times, the MBA Curriculum is designed by the University and it may so happen that the core syllabus, or even the elective subjects, will be pretty much the same in two colleges under the same University.

However, PGDM Curriculum are determined by the respective institutes, which imparts a certain level of flexibility to the curriculum, allowing it to be changed every year in accordance with the industrial requirements.

Universities, on the other hand, tend to have a lagging syllabus for a few years until requisite changes might be made.

It is often advised that those who are interest in the Corporate world or want to be an entrepreneur should opt for a PGDM course.

3. Susceptible to Fraudulence

Since PGP or PGDM courses are offered by autonomous bodies, students need to be careful while taking admission. They need to take precautions and be well-informed because fraudulent claims in terms of proper accreditations and the like may be made by smaller colleges. MBA degrees, on the other hand, are conferred by varsities, and hence, there is a lower chance of fraudulent claims.

4. Focus

Both MBA and PGDM courses have common core subjects. However, some experts claim that most MBA courses taken on a theoretical approach to management while PGDM courses are more practical, having an industrial orientation with a focus on skills based on market requirements.

5. Cost

Most MBA courses have lower tuition fees as compared to PGDM courses. It might be because Government approved universities offer MBA degrees. These universities receive financial aid and grants from the government, making the degree cheaper for the student. In case of a PGDM course, students have to bear the cost of the entire programme. However, this statement is not set in stone. There are MBA programmes which charge high tuition fees.

The below table indicates the basic differences between the two in a concise format:

Frequently Answered Questions:

Q: What is the difference between MBA and PGDM?

A: Stated simply, MBA refers to a management degree issued by a University and PGDM refers to a Diploma in Management offered by a private college or university, affiliated to AICTE. Apart from this, there are no major differences between MBA and PGDM.

Q: Which is more valuable between MBA and PGDM?

A: This depends on certain factors such as the quality of the course curriculum, pedagogy and the institute’s ranking and repute. These factors may vary from institute to institute.

Q: Is PGDM equivalent to MBA?

A: PGDM is Diploma course whereas MBA is a degree course, so they are not completely equivalent. However, in terms of core subjects and curriculum, MBA and PGDM are largely similar.

Q: Do IIMs offer MBA or PGDM?

A: IIMs offer Post Graduate Programme (PGP) or Post Graduate Programme in Management (PGPM), which are Diploma programmes.

Q: Which is better among MBA and PGDM?

A: Whether an MBA or PGDM is better than the other depends on a lot of factors such as quality of curriculum, pedagogy, faculty, industry and international exposure, to name a few. So, one cannot be declared better than the other universally.

Q: Is it possible to pursue an MBA after completing PGDM?

A: As per the eligibility criteria of the MBA, candidates should have a bachelor’s degree from a recognised institute or university. Postgraduate candidates are also eligible to apply for MBA. Hence, if a candidate wants to pursue MBA after completing PGDM, they are eligible to do so.

Q: What are the scopes of higher education after completing MBA and PGDM?

A: After completing an MBA, students can pursue PhD in Management. Students who want to pursue academics can also opt for Fellow Programme in Management. Since PhD is a doctorate degree which can be opted after completing a master’s degree, PGDM students will not be eligible for PhD. However, FPM is equivalent to PhD.

Q: Is it necessary to do an MBA to get a Government job?

A: No, it is not mandatory to have an MBA to get a managerial job in a Government organisation. A PGDM in a relevant specialisation can also be equally eligible or suitable for a managerial role in a Government organisation. However, having an MBA or a PGDM degree is not enough for getting a job in any organisation. The candidate has to fulfil other eligibility criteria or other skills required for the role.

Q: Which course is more affordable among MBA and PGDM?

A: Generally MBA programmes are more affordable than PGDM. Especially those MBA programmes which are offered by Government or public universities.

Q: Which are some of the top MBA colleges in India?

A: Some of the top MBA colleges in India include Faculty of Management Studies (FMS), University of Delhi; Jamnalal Bajaj Institute of Management Studies (JBIMS), University of Mumbai; KJ Somaiya Institute of Management Studies and Research (KJSIMSR), Mumbai, to name a few.

Q: Which are some of the top colleges offering PGDM?

A: Some of the top PGDM institutes in India include IIMs, MDI Gurgaon, XLRI Jamshedpur, SPJIMR Mumbai, among others.

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