Every year, thousands of students choose the path of MBA
and PGDM for their further studies, for the
large variety of career opportunities it has to offer. MBA is basically a management degree, offered
by a university. PGDM refers to Post Graduate Diploma in Management, generally offered by private
universities and colleges. After graduation, students who want to find a career in business and
management, are often in a dilemma about which course they should pursue, which can aid them to find
the best possible job in the future. To find out, one must know the important differences between the
two courses and then choose as per their preference. This article will explore the differences between
the two, and guide aspiring students in their journey of choosing the more suitable career path
What does MBA entail?
MBA is the acronym for Masters in Business Administration and is offered by
UGC-approved universities.
The degree becomes very vital and helpful when it comes to finding jobs and internships. Not only the
students who have studied BBA for their undergraduate apply for MBA Course but
also the ones from the
other backgrounds, as MBA holds the best possibility of finding an advantageous career option. The
course includes subjects of business administration, related to accounting, human resources,
management, entrepreneurship, operations management, business ethics, business law and business
communication, and basically any skill that is needed to function at the corporate level. The success
of an MBA degree in India is proved by how fast the Business schools are fast increasing in numbers
What does PGDM entail?
TPGDM is the acronym for the course Post Graduate Diploma in management, and is generally offered by
autonomous business schools, and prepares the students. There are a large number of companies that
recruit managers every year, and PGDM imparts the student with all the necessary knowledge, needed for
the same.
Major differences between MBA and PGDM
Though both the courses impart knowledge based on the same topic, that is, business, both take a
different approach towards it and thus a lot of differences between the two courses can be observed.
The students have to choose between the two, as per their preferences and according to what suits
their needs. The differences are mentioned below:
- 1. Form of the Course:- MBA is a degree course, offered by universities and are
UGC affiliated,
whereas PGDM is a diploma course offered by private business institutions. While MBA has a more
theoretical approach to the topic, PGDM Course (Degree) offers a more practical approach.
- 2. Curriculum:- As the MBA syllabus is mostly determined by the university, it
can
be taken that the syllabus and the curriculum for the course, in two colleges under the same
university, will be the same, and the syllabus remains the same for many years. The syllabus almost
stays the same for 3-7 years. In PGDM however, the syllabus and curriculum are decided by the
individual institutions/colleges, and thus no 2 colleges have the exact same PGDM
syllabus.
Moreover, the syllabus is subject to change every industrial year, as per the decision of the
college.
- 3. Chances of Fraud:-Many a time it happens, that various autonomous small
institutions declare that they offer PGDM courses, without making proper accommodation for the
same. Thus the students have the chance to suffer from fraudulence. On the other hand, MBA courses
are mostly offered by renowned universities, and thus the chances of fraudulence are comparatively
less. One thing to avoid this is to check for accreditation from authorised signatories and bodies
governing the educational regulation.
- 4. Aim:-Although the core subjects are almost the same, the approach is
different.
PGDM from a good institution teaches the students a lot of other things from outside the book. The
syllabus contains case studies, videos from the field, latest developments, to explain the concepts
more clearly to the students. Various workshops and extra-curricular activities organised by the
students help them to vitalise their analytical skills, managerial skills and leadership qualities,
which are needed for the important positions in the field. Whereas, MBA focus more on books.
- 5. Cost of Pursuing (Fees and Return on Investment):-MBA courses have
comparatively lower fees than PGDM. The universities receive aid from the government, and thus the
students have to bear fewer fees. However, the private colleges offering MBA courses, charge much
higher. While considering the fees criteria, students should take into consideration the overall
return on investment on both these courses, which means getting a better understanding of which
course will quickly cover the fees paid through average salary and the time involved, which would
work better in long term.
- 6. Duration of the Course:- Both the courses have a duration of 2 years, but MBA
follows a semester pattern, while PGDM follows a trimester pattern.
- 7. Average salary after the course (starting):- It has been observed that
students with a PGDM degree have a higher paying salary than students with MBA. The starting salary
for MBA graduates is Rs 7-10 lakhs per year, whereas the average starting salary for PGDM graduates
is Rupees 12 -15 lakhs per annum.
- 8. Career opportunities:- After completing an MBA one can work as an HR Manager,
Business Analyst, Marketing Manager, Finance Advisor, Investment Banker, etc. and after completing
a PGDM course, one can work as a Project Manager, Data Scientist, Auditor, Tax Specialist,
Consultant, etc.
- 9. Admission through Entrance Exams:- Both the programs accept scores on tests
like CAT, MAT, ZAT, etc. Universities offering MBAs also accept scores from state-level
examinations. PGDM institutions, unlike MBA, do not have any specific cut-off, but the selection
depends on factors such as past academic performance and achievements, apart from the test score.
- 10. Modernised Curriculum:- During the selection of curriculum/syllabus for PGDM
courses, the authority seeks advice from industry experts to design a course best suited for the
industry, which is not the case in MBA.
Which should one go for— MBA or PGDM?
According to the current condition, it will be more advantageous for the students to opt for PGDM
courses, as the course is focused on practical lessons and is more industry-relevant, as per the
current job market. As the syllabus is customized every year, there is a possibility that the student
will learn and gain experience with a wider variety of business concepts than an MBA. Also, PGDM
prepares you for facing real-life field challenges through its out-of-the-book teaching methodology,
unlike MBA. However, if there are concerns regarding the generally high fees of management programs,
one should choose MBA.
Conclusion
This article can be used as a guide for the students who want to pursue one of the mentioned programs,
but are having difficulty in choosing which one will suit them the most. The article contains the
major differences between the two programs, according to what the courses have in the bucket for the
students pursuing them. We have mentioned all points of difference that separate one course from the
other. As mentioned, the prospect of pursuing PGDM as per the business trends in 2022 is better.
Nonetheless, students can better understand the requisites and future advantages of both these courses
through this article and pick a career more rightfully suited for them.
