MBA vs PGDM – Which one is better for you?

There are plenty of candidates who are not aware of the differences between PGDM and MBA.  In order to help you understand the difference, their importance and how it is beneficial for your future let’s read on to find out which is better PGDM or MBA?

In terms of employment both courses can be said to be similar technically, however, there are a few things every candidate must consider before taking a decision. So let’s understand the difference between MBA and PGDM.

What is the difference between MBA and PGDM?

Masters in Business Administration (MBA) is a degree course offered by government-affiliated universities.

Post Graduate Diploma in Management (PGDM) is a diploma course offered by autonomous institutes that are recognized by the All India Council for Technical Education (AICTE).  Top institutes like IIMs offer PGDM and not MBA as they are not affiliated with any university.

Eligibility:

MBA:  A graduate/Master degree from a government recognized College / University or Bachelor/ Master degree through correspondence securing at least 50% marks in any discipline is eligible for the MBA program.

PGDM:  The level of strictness when it comes to qualification sees a bit of relaxation when it comes to a PGDM or PGDBM. The candidate must have completed Graduation from a recognized university in any discipline.

Entrance Process:

MBA:  Few Government Universities and their colleges accept entrance tests like CAT/XAT. Colleges also conduct their own entrance tests. There are colleges who accept admission through state level examination like MAHCET, PGCET, TANCET etc. In top private universities, they accept Symbiosis National Aptitude Test (SNAP), the Common Entrance Test (CET), CAT, GMAT etc. There are other entrance tests like CMAT, NMAT Exam, MAT, XAT, ATMA etc which are acceptable in few private universities. Few private institutes may also conduct rounds of group discussion, interviews, personal interviews, writing ability test etc. to check candidate’s eligibility.

PGDM:  Common Admission Test (CAT) conducted is compulsory in most top notch b-schools for Indian students. There are several other tests like XAT, CMAT, MAT, GMAT, ATMA are also accepted in few B-Schools.

Curriculum:

MBA:  The MBA curriculum at most government universities is a mix of theory and practical. Students gain more of theoretical knowledge of management concepts and practices. MBA Curriculum at top Private B-Schools like NMIMS and Symbiosis is at Par with IIMs & top PGDM B-schools.

PGDM:  Just like MBA the syllabus in this program prepares you for the real job market. It has a focus on building soft skills and current market trends. There will be several challenges thrown at you which will help to deal in real life business situations. The curriculum is very Flexible and Frequently Updated as per the changing business environment.

Fees:

MBA:  In India, MBA programs offered in government institutes are have lower tuition fees as compared to PGP or PGDM courses. As these universities are getting financial aid from the government result in very reasonable MBA programs for students. Government institutes like The University of Delhi may charge only around 1 Lac to 1.2 LAKH for the entire 2 year program.  FMS Delhi fee is just Rs 25,000 for the full MBA course. MBA fees in private universities are way higher than government institutes. Alliance University Bangalore offers MBA degree around 8-10 LAKH. There is another institute which is Symbiosis International University Bangalore charge around 10-12 LAKH for the entire program.

PGDM: The private institutes which are offering PGDM and IIM’s who offers (PGP) diploma program have a comparatively very higher fee structure than MBA’s. MBA program in Top notch institutes like IIM Ahmedabad, IIM Bangalore, IIM Calcutta may cost you around 19-21 Lakhs for 2 years. There are other private B-schools like SPJIMR charges around 17 Lakh, G D Goenka University Gurgaon fee charges around Rs.8 lakhs, IMI New Delhi fee is Rs. 16 lakhs etc.

Placements:

MBA:  If you have finished MBA from a government recognized university then you have to reach out to the respective company to get a job placement. Where private institutions like JBIMs provide placement to their students and has a really good past record.

PGDM:  Most of the PGDM institutions provide attractive placement offers since they are autonomous in nature. Campus placement is the unique selling point of these institutes. There is a job in your hand even before completing your second year of the program.

Recognition:

MBA:  All these government universities are recognized by University Grants Commission (UGC).

PGDM:  Most of these institutes don’t get university affiliations. However, they are still recognized by the All India Council for Technical Education (AICTE). Even Ministry of HRD can act as an approving authority for these institutes.

Institutes:

MBA: There are government institutes who are offering Masters of Business Administration Degree like FMS – Delhi University, IIFT Delhi-Deemed University, JBIMS – Mumbai University, PUMBA-Pune University etc. There are government Affiliated colleges like Anna University, Bangalore University etc. offers MBA degree to their students. There are also few top private universities which are offering MBA like NMIMS-Mumbai; Symbiosis –Pune; XIM-XUB Bhubaneswar etc.

PGDM:  Top institutes like Indian Institutes of Management (IIMs) offers Post Graduate Programme in Management (PGP) which is diploma to their students. There are some other private colleges which are offering Post Graduate Diploma in Management (PGDM) like XLRI, SPJIMR, MDI, IMI, IMT, TAPMI, KJ Somaiya etc.

Global Acceptance:

In India:  In Indian job market, there is very minor or negligible Difference between PGDM and MBA graduate. There is no much difference between PGDM vs. MBA salary. Both will experience the similar career growth in India. Your starting salary is completely depends on the name and brand of your B-School/University combined with your internship and scores. Remember after landing up in your dream company, the future completely depends on how an individual is using their skill, knowledge for organizations benefits.

Outside India:  Let’s divide this into two parts i.e. Jobs perspective and higher education.

1. Jobs Perspective: In the global job market whether you are a PGDM or MBA graduate what they look for is many more aspects of you as an individual. The B-School & the institute brand value is important, it’s the alumnus and how that particular industry sees your institute which counts too.
2. Higher Education: In terms of higher studies, you have an edge if you have an MBA degree. When it comes to evaluation of your application for the higher studies like PHD; here MBA is considered as masters degree whereas PGDM/PGP is considered as masters diploma.