THIS ARTICLE WAS UPDATED ON 28/JUNE/2020
When you are in the management field interested in doing a postgraduate course to enhance your skills in this particular field, then I’m sure you’ve asked his question to yourself, MBA or PGDM?
Everybody wants to do the best course which will help them to pursue a job in a big company with a decent salary as a postgraduate course is necessary for a much better job in the field of management, right?
So, in this article, we are going to cover some crucial aspects that will help you clear your confusion between these two courses, MBA and PGDM.
Knowing the difference between these two courses is very important. So, let’s discuss the differences first.
MBA or Master of Business Administration is a postgraduate degree program offered by the institutes that are affiliated to a university.
PGDM or Post-graduate Diploma in Management is a post_graduation diploma program offered by the private or autonomous or government institutes that are not affiliated to any university.
Personal goals are also an important factor to differentiate between PGDM and MBA as choosing one out of these two depends on what the person wants to accomplish in the future or what his goals are.
Suppose, you haven’t decided in which business, administration, or management field you want to get into, then you can choose MBA, as it allows you to get a nice job in the healthcare industry, including finance, consulting, marketing, operations, and human resources. MBA graduates who successfully recruit for healthcare jobs unite their general management education with deep knowledge of the industry.
And if you want to get better knowledge in business and management, then you should opt for the PGDM program as it provides quality education in the field of business and management. It increases your career opportunities as well. The more education you have, the better your career opportunities and choices are. In business schools, PGDM students learn different techniques and skills that can help businesses grow.
To clear other confusion of yours, I have arranged a tabular representation of some key differences between MBA and PGDM. most of the aspects are covered in this table.
|Framework||MBA from govt. universities||MBA from private universities||IIMs||Private PGDM colleges|
|Program offered||MBA||MBA||Post Graduate Program in Management (PGP) and MBA both||PGDM|
|Top institutes/ colleges||FMS- Delhi University, IIFT Delhi- Deemed University, JBIMS – Mumbai University, PUMBA- Pune University||NMIMS Mumbai fee is Rs. 17.44 lakhs, SIBM Pune fee is Rs. 18.25 lakhs. It’s mostly like 2 lakhs above.||IIM Ahmedabad, IIM Bangalore, etc.||School of Management Sciences, Varanasi, XLRI, SPJIMR, MDI, IMI, etc.|
|Recognized or approved by||University Grants Commission (UGC)||University Grants Commission (UGC),||Recognized by Ministry of HRD||All India Council for Technical Education (AICTE)|
|Fee||At FMS Delhi the total fee of the whole MBA course is Rs. 25,000/-||SMS Varanasi fee is around 4 Lakhs, SIBM Pune fee is Rs. 18.25 lakhs. It’s mostly like 2 lakhs –above.||IIMs have a higher fee structure.IIM Ahmedabad fee is Rs.21 lakhs, IIM Bangalore fee is Rs.19.5 lakhs.||Top PGDM B-schools charge between Rs 4 lakhs to Rs 20 lakhs.|
|Duration||Two Years||Two Years||Two Years||Two Years|
|Admission process||Some National level entrance test||Own exams like NMAT, SNAP, X-GMT||CAT||CAT, XAT, CMAT, MAT, GMAT, ATMA|
After discussing the key differences, let’s talk about which course should you opt for or which course is suitable for you. Choosing any one of PGDM and MBA depends on other factors as well so let’s consider them too, shall we?
Decide your goals first. As we have discussed in the beginning that personal goals will help you consider which course you should opt for. First, know your goals and then decide your post-graduation course but decide carefully, as whatever you will choose will go with you and get you into the business world except the goals will be different.
Knowing your budget is also very important. If you want to pursue your MBA or PGDM from IIM then you should have a big budget, as I’ve mentioned that the fee there is 21 lakhs. Though there is an education loan also, taking a loan of this much amount will not be favorable for your family too.
There are several other big and famous colleges for MBA and PGDM, you can try to go there according to your budget. The entrance examination CAT can help you secure your seat in some top MBA or PGDM colleges if you secure good marks. You can do a postgraduate management course in a decent college in the budget of 2 lakh to 10 lakh.
There are competitive exams too for taking admission to top MBA and PGDM colleges in India.
You might be aware of some exams CAT, XAT, CMAT, MAT, GMAT, and ATMA. These are some common exams and there are also some exams conducted by the B-schools as well. These exams are generally held between December and February every year. Getting a good score in these competitive exams can help you secure your seat in India’s some of the top B-schools.
So, after reading all of the above points, some of your confusion must have cleared out, right? Choosing the course that will help you in the future is crucial because it is not a joke, your whole career depends on it. You should take the decision wisely as no one likes to regret their decisions in the future. Choose this course only when you are sure that you can do your 100% while pursuing it and try to build a bright future out of it.
As we’ve discussed a lot of details about the PGDM degree program, let’s know the reasons for choosing a PGDM program over an MBA.
You should opt for PGDM if you want to learn more about business and management practices. The PGDM program is more industry-oriented as compared to an MBA program and helps students gain theoretical knowledge along with the practicals.
If you choose PGDM, you will have the opportunity to specialize in the field that interests you the most. You will get detailed knowledge about the subject and you could utilize your skills during the internships offered in the program.
If you have taken admission to a good PGDM college then you will have an opportunity to learn more and gain experience through several internships offered during the program. This will help you develop your skills as well. Its other benefit is, you can get attractive placement offers, as the PGDM students are more skillful and knowledgeable about a particular field as compared to the MBA ones, so companies prefer to recruit PGDM students.
In the PGDM course, students get in touch with the interactive session of famous business leaders, get to have a part in business internships so that they could be comfortable enough to work in the industries and companies. To motivate students, various workshops are also held with top industry managers delivering speeches to help students know more about developing their decision-making skills.
Institutes offering PGDM courses have highly qualified teachers who help students to develop and enhance every skill which is required to be successful in the business world. In the PGDM course, students get to acquire new skills and work on them by practicing them in different events and internships.
PGDM course is more job-oriented as compared to the MBA as it focuses more on the practical part rather than the theoretical. The students practically learn to work in an organization or company and practice their skills in internships. PGDM graduates are more skillful and knowledgeable than MBA graduates.
There are some fields where an MBA degree dominates over the PGDM diploma.
When you graduate from the PGDM course, you require an AIU equivalence certificate but when you graduate from an MBA you don’t need any such certificate as you are already possessing a prestigious degree.
Top business schools in the world offer MBA courses rather than PGDM because an MBA degree has a wide scope. It is accepted by all the recruiters and provides a lot of global employment opportunities.
MBA makes it easy and acceptable if you are thinking of going abroad for higher studies as foreign institutes need to see your degree instead of your diploma and an MBA degree has more credibility than PGDM.
MBA degree programs are offered by colleges that are affiliated to universities, which accept all the credential norms whereas private PGDM colleges sometimes do not follow AICTE norms. Issues like these happen at the time of fee refund as candidates find it difficult to get their paid PGDM fee back. Since the MBA colleges are affiliated to universities that are controlled by the University Grants Commission (UGC), the colleges have to abide by the university norms. In addition to the UGC approval, these university-affiliated colleges can also get AICTE approval for their different courses.
Everybody can’t afford the high fees of PGDM courses. So, if you want an affordable post-graduation course in management, then you should opt for an MBA. Being within your budget and also highly credible, this course will never let you down.
For instance, FMS – the University of Delhi offers an MBA at Rs.25,000/, JBIMS-University of Mumbai offers an MBA at Rs.6 lakhs (Recently revised upwards), PUMBA-Pune University offers MBA at Rs.1.50 lakhs, Bangalore University MBA fee is Rs.54000/-.
Moreover, the MBA degree is awarded by various government and private colleges that are affiliated to universities so it becomes easily affordable for the students who have a burden of financial problems.
You must have heard the common quotation, “Old is Gold”. So, in the case of choosing between MBA and PGDM, the MBA is a much older course and has become a legacy. It’s not a legacy because it’s old, it’s a legacy because it’s gold.
How to choose a Business School?
While choosing a business school, keep the following things in mind: