Most of the people, after gaining one or two year experience in the management field, think of pursuing an MBA or a PGDM course, so as to further polish their credentials and job prospects. While many think that there is a difference between the two, few also perceive both as the same degree, with just a difference in the name. It is very much important for an individual to understand how both of them differ from each other and what their relevance is. Pursuing both these courses helps one in the growth of their career, in getting a better position and obtaining a bigger salary.
What do they mean?
MBA: Stands for Master in Business Administration.
PGDM: Stands for Post Graduate Diploma in Management.
Why are they pursued?
MBA: A Master in Business Administration (MBA) is a degree course offered by the colleges affiliated to the universities. So, only universities can offer MBA programmes.
PGDM: A Post Graduate Diploma in Management (PGDM) is a diploma course offered by the institutes that are recognised by the All India Council for Technical Education (AICTE) and which are autonomous and not affiliated to any university. However, accreditation by the Association of Indian Universities (AIU) makes an institute's PGDM course equivalent to an MBA.
Are MBA and PGDM equal?
It is not mandatory that a PGDM is equal to MBA because then the college offering the PGDM course must have accreditation from AIU (The Association of Indian Universities).
Difference between the curriculums:
Although there are similarities between the curriculum of both, differences exist as well. A student pursuing an MBA will be studying more of the theoretical aspects of management. An MBA institute will be following a fixed curriculum as it will be based on the university guidelines.
A student pursuing a PGDM course will be gaining knowledge regarding building soft skills and the programme is more industry-oriented. An autonomous institute does not have to follow university standards, so it is free to change its curriculum according to industry standards and change in the business environment. The course will prepare you for a senior-level position in a company.
The difference in Fees: MBA v/s PGDM
Which is better in the longer run, MBA or PGDM?
India and Global Job context:
In terms of job prospects, there is absolutely no difference between MBA and PGDM if one comes from a reputed B School. In India, 9 out of 10 best B colleges offer PGDM. Placements depend on the brand name of the college, alumni network and what is the impression of your institute in the industry. That is why we see top management colleges offer PGDM very limited colleges offer MBA. The performance and appraisals are not based on a person’s credentials but solely is based on performance.
Educational Context:
In case one wishes to continue with their higher studies by going for a PhD or double MBA, preference is always given to a candidate with an MBA degree. Even though the difference between both is very less, MBA degree is given an edge for the simple reason that it is a Master’s Degree and not a Master’s Diploma.
Therefore if someone is not looking for further studies in the field then there is absolutely no difference between an MBA and a PGDM. What should be kept in mind though is that PGDM should be pursued from an institute having a standard and name in the industry.