What is the difference between PGDM and MBA? Can’t decide between PGDM vs MBA for your higher education?
The rise of India’s corporate culture and the growing enthusiasm for entrepreneurship are driving several students to take up management courses. Although there is no shortage of colleges and universities offering post-graduate courses in India, students are often confused about making the right choice. After completing graduation deciding to pursue management from one of the top B-Schools in India, the next big decision is PGDM vs MBA!
Unless you know the difference between PGDM and MBA, it can be impossible to opt for the right course as per your future goals and learning style, and intent.
PGDM stands for Post-Graduate Diploma in Management and MBA stands for Master of Business Administration. Both the courses offer different specializations and are life-changing courses as they develop not just your professional skills, but personal growth as well.
We bring you the key differences between PGDM and MBA so that you can choose a course and an institute that aligns with your dreams and vision for a management career!
What is the Difference Between PGDM and MBA?
|Recognized/Approved by||AICTE – All India Council for Technical Education.||UGC – University Grants Commission.|
|Curriculum||Flexible and frequently updated.||Rigid as approvals are required from University Curriculum in most colleges.|
|Fee||Comparatively Higher than MBA – Top 10 B-Schools charge around Rs. 15-20 Lakhs for 2 Years.||Government college fees are lower. Fees for top colleges range from Rs. 17-25 lakhs.|
|Focus||Practical Learning||Theoretical Knowledge|
|Placements||Many PGDM Colleges have a Better Placement Record.||Highly dependent on the institution – MBA graduates get decent job offers.|
|Innovative Practices||Multi-dimensional teaching with presentations, short-term training, live projects, etc.||Limited scope for innovation.|
|Entrance||Thorough CAT/ MAT/XAT/ATMA and some state-level examinations like TSICET, MAH-CET etc.||Thorough State level Entrance Examinations like TSICET, MAH-CET, or individual University exams like SNAP, etc.|
Detailed Differences Between PGDM and MBA
Above all, what matters for a student is understanding the scope and salary after completing MBA and PGDM and then making the choice.
Scope after MBA and PGDM
While many MBA colleges and institutes are well-recognized, the job offers are dependent on the student’s skills and knowledge about the particular subject or job requirements. In the case of PGDM, the placement records are better because students get a lot of practical learning and industry interaction.
In many cases, students at PGDM get placed in the internship organization or a company that visited the campus for projects, presentations, etc.
Acquiring an MBA degree was a lot about the value as the degree itself was considered higher than a diploma. However, today, even the giant MNCs and dream companies like Google and Facebook are more focused on skills and not certifications. That’s why you can land your dream job or even expand your dreams after a PGDM, too.
Salary after MBA and PGDM
On average, the salary after PGDM starts at Rs. 4-5 LPA while in the case of MBA, it can start at Rs. 3 LPA, if you have completed your course from a not-so-reputed institute. In the case of a branded B-school, you can look forward to starting at a higher package; in PGDM and MBA courses.
After PGDM, some of the highest-paying jobs include an investment banker, project manager, management consultant, marketing manager, business development manager, sales manager, business analyst, human resource manager, etc.
While the initial salary ranges between Rs. 8-10 lakhs after your course, you can expect to earn up to Rs. 50-80 lakhs in the future after good experience and exposure.
All about AICTE and UGC – The Governing Bodies for PGDM vs MBA
All India Council for Technical Education is a Central Government body. It is a council that controls and approves technical education under the Ministry of Human Resource Development (HRD). In 1945, AICTE was established as an advisory body and in 1987, it was awarded a statutory status by the act of the Parliament.
Today, AICTE is responsible for the planning and development of technical education and management education in India. Most of the PGDM courses are approved by AICTE. Almost 500 institutes are approved by AICTE to offer 2-year PGDM courses in India.
University Grants Commission of India is a Central Government body that is set up the act of the Parliament in 1956, under the Ministry of Human Resource Development (HRD). UGC handles the coordination, determination and maintenance of the standard of higher education, especially MBA in India.
It also recognizes universities in India and grants funds to the recognized colleges and universities. That is the reason why some MBA courses are comparatively cheaper than private colleges offering PGDM courses. Pan-India, there are almost 5500 universities and colleges that offer MBA and they update their curriculum every 5 to 10 years.
Why Consider PGDM?
Like any course, there are certain pros and cons of PGDM. During your quest of choosing PGDM vs MBA, it is important to understand both sides of PGDM in India. In terms of pros, the PGDM curriculum is constantly updated, helping you learn as per the current trends of the industry.
Especially after the pandemic, understanding how businesses will function and learning relevant skills in your B-school itself can give you an added advantage during the placements after your PGDM.
Also, PGDM colleges are now equipped with excellent infrastructure and facilities, ensuring that your two years of post-graduation life are truly exciting – not just in the classroom, but also outside classes. You can network with future business leaders, hone your skills in various clubs, participate in multiple events, gain exposure with internships, and much more!
In terms of cons, the only con with PGDM is the diploma and not the degree. If you are extremely sure that you want a degree to your resume and wouldn’t want a diploma course, PGDM might not be the right course for you.
But if you’re looking for a job-oriented program with real-time business world experience, PGDM is the way to go.
Why Consider MBA?
If your goal is to earn a degree and complete your post-graduation at a cost-effective price, MBA might be the right choice for you. Also, if you’re a person that prefers theoretical knowledge over practical learning, MBA classes will be more suited for your level of understanding and grasping.
Another benefit of pursuing an MBA is the degree – it is something that might earn you the edge in certain job opportunities. While choosing your MBA college, make sure you keep in mind these key parameters:
- Ranking of the B-School – NIRF Ranking, All-India Ranking, etc.
- Legacy of the institute – Is it a reputed name, any bad reviews, student feedback
- Fees for the MBA program – Affordable, Kind of ROI expected and delivered
- Student-Faculty Ratio – Should be a comfortable number so that you get personalized attention
- Location of the B-School – Should be connected to industrial/business hubs
- Placement Record – Packages, No. of Companies that Visit, MNC Placements, etc.
The cons of pursuing an MBA include the rigid curriculum which might limit your exposure, especially in the current scenario. Also, the theory knowledge may hinder your growth after placement as you wouldn’t know the working of a corporate world unless you’ve experienced it first-hand. MBA graduates get more fresher-grade salaries for longer.
As for PGDM, because you know about the corporate culture and interact with industry professionals, you might have a higher chance of climbing the ladder faster.
Which is Better – MBA or PGDM for Government Jobs?
In many government jobs, MBA is still preferred as it is a degree course. However, that is gradually changing as many jobs in the public sector are now open for PGDM students as well.
However, the students that obtain their PGDM from autonomous B-schools that aren’t affiliated with AICTE are not eligible for government jobs. So, if your goal is to work in the public sector and you want a quality government job for life, make sure you pursue a course that is approved by the government, irrespective of whether it is a degree or diploma course.
The Last Word
If you’re struggling in the battle of PGDM vs MBA, you’re not alone. Millions of students have to make the choice year on year and ensure that it aligns with their dreams and aspirations. The first step is always to understand the difference between PGDM vs MBA and make your pros and cons list for your shortlisted colleges.
More than the course, the institute also plays a vital role in determining how your 2 years will shape your future. Also, preparing for the entrance exams is crucial as it is the stepping stone for your future.
Study well for the entrance, master the Group Discussion and Personal Interview and gear up for 2 years of learning and exploring. Although the fees may seem high, remember it is a one-time investment in a lifetime of success.
Whether you choose MBA or PGDM, your future will depend on your ability to grasp the subjects, being proactive in college, and absorbing as much knowledge, wisdom and innovation as you can during the course!
All the best!
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