Difference between MBA vs PGDM

After completion of your graduation, the question that you must have pondered upon is whether to go for MBA or a PGDM program? What are the key differences between MBA and PGDM!

This question arises when you have made up your mind to do an MBA program but while selecting your desired institute, you suddenly realize that the institutes that you have shortlisted provide a PGDM course and not MBA.

So, to have a better knowledge about it, let’s know the key differences between MBA and PGDM.

MBA vs PGDM: What do they mean?

One of the major differences while comparing MBA and PGDM is that MBA or Master of Business Administration is a degree course that can only be offered by the colleges affiliated to universities, whereas PGDM or Post Graduate Diploma in Management is a diploma course offered by autonomous institutes.

For example, The Faculty of Management Studies (FMS), Delhi, is affiliated to Delhi University and hence offers an MBA degree. While MBA colleges like SP Jain Institute of Management Studies and Research (SPJIMR) or Management Development Institute, Gurgaon are autonomous in nature and hence offer PGDM courses.  You can get admission in best MBA College like IIM ahmedabad.

Shanti Business School (SBS, Ahmedabad) was established in 2010 as a Corporate Citizenship Initiative of INR 7,000 Crore Chiripal Group of Industries, Shanti Business School (SBS, Ahmedabad) providing PGDM courses like PGDM marketing, PGDM Finance, PGDM International Business, PGDM Supply chain management, PGDM Enterpreneurship etc.  You can get admission in top PGDM business school in India.

However, not all IIMs have started offering MBA degrees; some chose to stick to awarding diplomas as they’ve now brand equity attached to it. IIM Bangalore was the first IIM to award a degree in 2018, followed by Indore, Ahmedabad, and Calcutta.

Syllabus 

Another factor in differentiating MBA and PGDM is the syllabus. In the majority of the MBA courses; the curriculum is formulated by the university and therefore is pretty rigid in that sense. So, the core syllabus is expected to be the same in two different MBA colleges recognized by the same university.

Conversely, PGDM courses are individually designed by an institute, which leads to more flexibility in the curriculum. Every year, changes in the industry force changes in the curriculum. Therefore, colleges offering a PGDM program are expected to be more suitable and aligned with the trends in the corporate world.

The focus of the course

Both courses’ core subjects, MBA and PGDM, are about the same. MBA programs, according to experts, are more concerned with technical and theoretical aspects of management rather than the application of practical knowledge.

In contrast, PGDM courses are more focused on the industry and its practical knowledge. This course is designed to assist students in developing the skills needed in today’s market. Therefore, the PGDM course is more beneficial to students in terms of developing practical marketing skills while keeping industrial perspectives in mind.

Curriculum

MBA programs in general follow a set curriculum and are more theoretical. There is some rigidity in curriculum revision to keep up with changes in the industry and economic landscape. These revisions take 3-5 years to complete. Private universities, on the other hand, update their curriculum on a more regular basis.

The PGDM curriculum, on the other hand, can be revised or updated at the discretion of the business school to keep up with new industry requirements and standards. This allows schools to maintain a competitive advantage, and such competition encourages rampant curriculum and pedagogical innovation. In addition, as opposed to pure theoretical learning, such programs allow for more practical application-based learning.

Any good PGDM program would include industry experts in curriculum design. These veterans bring foresight, which encourages the incorporation of emerging and disruptive technologies like AI, Design Thinking, and Business Analytics into management curricula.

Along these lines, it should be noted that MBA exams are administered by respective universities, and all colleges within a given university will have the same exams. In the case of IIMs and private b-schools, the exams are administered by the schools themselves, which have considerable control over their evaluation criteria.

Expenses

Generally speaking, an MBA is less expensive than a PGDM. This is so because of the grants that these institutions receive from the government for these MBA programs. Aspirants can afford to attend these universities thanks to government grants and financial aid. Students must pay the entire program fee in order to pursue a PGP or PGDM degree.

Entrance Examinations

Another important distinction between PGDM and MBA is that the entrance exams required to apply for an MBA or PGDM vary depending on whether you are studying in India or abroad. To study MBA abroad, you must provide GMAT scores, and many universities accept GRE scores as well. In India, the GMAT is widely accepted, along with other management exams such as CAT, MAT, ATMA, XAT, NMAT, SNAP, and so on. Furthermore, if you intend to pursue a PG Diploma in a management field abroad, you may or may not be required to provide GMAT scores, depending on your chosen course and university.

MBA vs. PGDM – Impact on Your Career

Let’s take a closer look by classifying the career impact of these courses into two categories, higher education, and jobs. There is a significant difference beginning with higher education. Obtaining an MBA degree is more valuable than obtaining a diploma. The MBA qualifies a person for a master’s degree, whereas the PGDM qualifies a person for a diploma. But this has nothing to do with students’ industrial success or the quality of knowledge imparted in institutes.

It is important to note that the institute’s infrastructure, which includes the faculty and teaching methodology, makes all the difference. In addition, the institute’s track record and reputation distinguish it from the competition. For obvious reasons, a degree or diploma from a reputable institute is always more valuable.

Therefore, it doesn’t matter which course you take if you want to build a successful career in management. All that matters is the institute you choose, so think practically when selecting a management institute.