MBA and PGDM are the two courses that help an individual learn entrepreneurial and managerial skills. The main difference between MBA and PGDM is that while MBA is a regular degree course offered by colleges affiliated with recognized universities, PGDM is a diploma course, which is offered by autonomous colleges.
Students who have completed their graduation or who are about to complete their graduation, and want to go for higher studies, may have a question in mind regarding which one is better MBA or PGDM?
So, it is worth noting that the value of both the courses is the same, in the Indian context, however, in an international context, MBA may have an upper hand over PGDM, usually when the student wants to pursue a Ph.D., but with regard to the job, there are treated equally.
Also Read: Difference Between Degree and Diploma
Here in this writeup, we are going to shed light on the difference between MBA and PGDM.
Content: MBA Vs PGDM
- Comparison Chart
- Key Differences
- Frequently Asked Questions (FAQs)
|Basis for Comparison||MBA||PGDM|
|Expands to||Master of Business Administration.||Post Graduate Diploma in Management.|
|Meaning||MBA is a post-graduate business degree that inculcates entrepreneurial, managerial, and leadership skills in students.||PGDM is a post-graduate management course that helps in building practical and industry-oriented skills in students.|
|Offered by||Colleges affiliated to Universities||Standalone Autonomous colleges or Business Schools|
|Accreditation||Accredited by University Grant Commission (UGC)||Accredited by All India Council for Technical Education (AICTE)|
|Validity||It is a regular post-graduate degree.||It is equivalent to a postgraduate degree.|
|Examination||Conducted by the university.||Conducted by the college or institute.|
|Course Structure||University-approved curriculum, which integrates both technical and theoretical aspects of management.||An industry-oriented program that focuses on practical knowledge.|
|How frequently the syllabus is updated?||Less frequently||Comparatively more frequently.|
|Teaching Method||Routine and Rigid||Innovative and flexible|
|Placement||Only top and popular colleges provide placement to students||Offers guaranteed placements with a good package to students|
Definition of Master of Business Administration (MBA)
Master of Business Administration (MBA), is a post-graduate, internationally accepted degree in business that imparts technical, managerial, and entrepreneurial skills, in the students.
Generally, to complete a full-time MBA course takes two years which is divided into four semesters. However, there are other modes also like part-time MBA which takes three to four years to complete or Executive MBA which can be completed in one year. These are mainly introduced for the working class, who are interested in pursuing MBA while continuing their job. One can pursue MBA from online, correspondence, or distance mode also.
- Being an MBA graduate makes you a good decision-maker, as well as increases your professional network and brings new opportunities.
- Regarded as the most suitable option, to pursue when you are looking forward to excelling in your career, become an entrepreneur, and paves the way to enter the corporate sector.
- Designed to develop such skills, which are essential for making a career in the field of business and management.
- MBA programs cover core subjects like finance, economics, marketing, human resource, operations, etc.
To complete MBA, a student is required to undertake an internship program in an industry or enterprise, which will provide practical knowledge and training to them. Also, it will help in getting better job opportunities.
It is worth noting that, there are a number of management colleges and institutes which offer Post Graduate Diploma (PGD) or Post Graduate Programme (PGP) in Management, which is actually equivalent to an MBA degree
Also Read: Difference Between MBA and Executive MBA
MBA Entrance Exams
- Common Admission Test (CAT)
- Management Aptitude Test (MAT)
- Symbiosis National Aptitude Test (SNAP)
- Xavier Aptitude Test (XAT)
- Graduate Management Admission Test (GMAT)
Also Read: Difference Between GRE and GMAT
Definition of Post Graduate Diploma in Management (PGDM)
PGDM is an abbreviation for Post Graduate Diploma in Management, is a certified diploma course offered by several standalone autonomous institutes and business schools that are not affiliated to any university. It is one of the most demanding courses in India.
The basic PGDM course is a 2-year full-time program. It aims at providing students with all the practical knowledge and technical skills, which are needed for effectively managing the organization.
- The autonomous colleges and institutes approved by AICTE have in-depth teaching and training module, which is mainly designed for reshaping fresh graduates into dynamo management professional.
- The student has to study an array of case studies, mock drills, undergo training at business enterprises and factories. Further, the student is also required to make projects and dissertations.
- The syllabus is designed in such a way that helps in improving the conceptual knowledge, behavioral and soft skills of the students.
- As PGDM is offered by an autonomous body, the curriculum is designed by the institute itself, considering the needs and trends in the industry. Also, the curriculum is updated at regular intervals.
Admission in PGDM
- PGDM is offered by many autonomous colleges, institutes, and deemed universities. And every educational body has a different procedure for admissions in the said course.
- Admissions are done on the basis of central level entrance exams like Common Admission Test (CAT), Management Aptitude Test (MAT), Xavier Aptitude Test (XAT), Common Management Aptitude Test (CMAT), etc.
- Many state universities organize their own entrance exam Karnataka Management Aptitude Test (KMAT), Himachal Pradesh University Management Aptitude Test (HPUMAT), Tamil Nadu Common Entrance Test (TANCET), etc.
- Direct admissions on the basis of the percentage obtained in the graduation and work experience.
Typically to get admission in the PGDM course, one must qualify for the entrance examination required by the college or institute and also clear the cut-off.
Key Differences Between MBA and PGDM
Now after comparing and clear understanding of the two almost similar courses, let us understand the difference between MBA and PGDM:
- MBA is a short form of Master of Business Administration is a master’s degree, whose course duration is two years, that helps students excel in the field of management. As against, PGDM is a short form of Post Graduate Diploma in Management, is a diploma course, which makes a person industry ready, to hold managerial positions in large and mid-sized organizations.
- As the name itself signifies, PGDM is a diploma course, whereas MBA is a degree, just like M.Com, ME, M.Sc, M.Pharma, etc.
- While MBA is offered by colleges affiliated with recognized universities, PGDM is offered by autonomous colleges or Business Schools (B-School).
- The universities which offer MBA needs to be accredited by UGC. On the other hand, the colleges which offer PGDM must be accredited by AICTE.
What are UGC and AICTE?
UGC stands for Universities Grant Commission. It is a statutory body under the Ministry of Education which provides recognition to universities in India as well as the body is responsible for disbursements of funds to such recognized universities and colleges.
AICTE is a short form of the All India Council for Technical Education (AICTE). AICTE is also a statutory body, under the Department of Higher Education.
- While PGDM is valid across the country. Also, it is equivalent to a postgraduate degree. On the other hand, MBA is a regular post-graduate degree.
- MBA examinations are conducted by the affiliated university. As against, PGDM examinations are conducted by the concerned college or institute.
- MBA has a university-approved curriculum, which integrates both technical and theoretical aspects of management. Moreover, the course structure is similar for all the colleges affiliated with the university, across the country. Conversely, PGDM is an industry-oriented program, which focuses on providing practical knowledge to students.
- The course syllabus of MBA is less frequently updated, whereas the course syllabus of PGDM is updated as per the need of the industry and changes in the trend. This is because MBA is offered by university-approved colleges and the curriculum is designed by the university and so, any changes in the course syllabus, require approval from the relevant authority of the University. After that changes are made by the affiliated colleges in their course. Unlike, PGDM is offered by autonomous bodies and institutes and that is why changes are made in the course syllabus in every one or two years.
- PGDM course fee is higher than the MBA course fee because PGDM is offered by autonomous colleges and private business schools which do not receive any funding from the government. Therefore, the total fees (including the tuition fees and hostel fees) are high, so as to maintain the quality and standard of the course, they hire the best faculty to teach students, and also invite companies for placements. On the contrary, MBA colleges generally receive funding from the government, so their fees are comparatively less.
- Colleges that offer PGDM courses have a higher placement record as compared to MBA colleges. Many colleges even offer guaranteed placement to students along with a handsome package. Contrastingly, MBA is a very common degree and many colleges are offering MBA courses to students but not every college makes it to placements, i.e., there are only a few top MBA colleges that give placement to the students.
- PGDM colleges and institutes hire the best and highly qualified teachers, who are not supposed to follow a specified teaching method to teach students, rather, flexible and innovative teaching is preferred to make the learning more interesting. As against, in case of MBA, the teachers are supposed to follow the predefined method to teach students, which is quite rigid and regular.
- One must note that, after completing MBA, a person can apply for Ph.D. On the other hand, one can apply for Ph.D. after PGDM only when the PGDM is completed from an AICTE approved university, which is equivalent to an MBA as per the AIU (Association of Indian Universities) norms, otherwise not.
- Both are business and management courses, valid across the country.
- Admission in the two courses is possible only after graduation from the recognized university and qualifying entrance exam like CAT. MAT, XAT, CMAT, SNAP, etc
- Two years course duration.
Frequently Asked Questions (FAQs)
MBA or PGDM which has more value?
There is no clear-cut answer as to whether which course is more valuable. Basically, it depends on the educational institution from where you are pursuing the course. If the institute or college is offering quality education, producing management professionals, and providing guaranteed placements at top-notch companies, then that degree or diploma has more value.
Here, one should note that in the corporate sector both are treated in a similar way and the only thing that matters is the skills, competencies, knowledge, and ability of the individual to perform the job effectively, which creates value. And so, your career growth is not dependent on these two degrees, it depends on how you apply your knowledge and skills, and what is your approach towards work.
MBA Vs PGDM salary?
To put simply, the best students from the top institutes or universities get better placements with the handsome package, as compared to the students who have done the same course from a not-so reputed/popular institute. Moreover, the candidate with good communication skills, conceptual knowledge, and innovative thinking, gets paid better than his/her peers.
No matter what you choose for your career, both degrees are an investment, which is going to pay off in the long run, when you have studied the course seriously. Further, while choosing one of the two courses, you can take time to research all the alternatives, and consult with experts as to the institute/university where you want to pursue the course from.