MBA vs PGDM: Which is better?

Any aspirant looking to crack CAT or one of the many other management entrances in India has pondered upon a critical question – MBA vs PGDM:

Are they different?

Do they offer different career outcomes?

Does having one over the other affect your potential salary growth?

All in all, which one comes off as better in the MBA vs PGDM debate?

For many prospective students, choosing between MBA vs PGDM is more than just a matter of preference; it’s about understanding the fundamental differences between these management courses. Historically, institutions like the Indian Institutes of Management (IIMs) awarded PGDM degrees, which gained significant popularity due to their industry-oriented approach. However, the term “Diploma” often carries a certain stigma in India, leading many to question the credibility and value of PGDM programs compared to MBA degrees.

In this blog, we’ll address all those questions and more. By the end of this blog, you’ll not just be well-versed with the differences between the two but also realise why your choice should depend less on the type of degree and more on the college, cohort, and placement scenario.

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MBA vs PGDM – How different are they?

While looking up target colleges and management programs, you’re sure to have come across the term ‘PGDM’. It can be confusing to know that most of your target colleges, including XLRI, MDI, and SP Jain offer PGDM degrees instead of the regular old MBA. 

What exactly is PGDM, and how is it different?

The primary difference between MBA and PGDM lies in their names. The full form of PGDM is ‘Postgraduate Diploma in Management,’ while the same for MBA is ‘Master’s in Business Administration. ‘ 

PGDM is a diploma course that can last one or two years, depending on the program. It is governed by the AICTE, or the All India Council for Technical Education, which comes under the Ministry of Human Resource Development. This council recognises standalone and autonomous B schools and ensures they continue to function with utmost integrity.

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On the other hand, the MBA is a two-year degree program that can only be offered by colleges affiliated with universities recognised by the University Grants Commission or the UGC. The UGC is the supreme governing body in India for all universities and related matters. 

But how much of a difference does this make? Is a degree better than a diploma? This question is better answered by the fact that employers of all kinds, including PSUs, make no distinction between the two while recruiting. For all intents and purposes, the MBA vs PGDM debate comes to rest right here.

In fact, up until 2017, India’s top IIMs also offered only PGDM courses. Only after the IIM Act of 2017 were premier IIMs permitted to award MBA degrees.

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MBA vs PGDM – Key differences

1. Definition and Accreditation

• MBA (Master of Business Administration): This is a postgraduate degree that can only be conferred by universities or institutions affiliated with them. The curriculum and course structure are regulated by the University Grants Commission (UGC), ensuring a standardised approach across various institutions.
• PGDM (Post Graduate Diploma in Management): Unlike an MBA, a PGDM is a diploma course offered by autonomous institutions. These institutes are accredited by the All India Council for Technical Education (AICTE). The autonomy allows these institutions to create a more flexible curriculum responsive to industry trends.

2. Course Structure and Focus

• MBA: The focus is generally on theoretical and technical aspects of business management. MBA programs are often structured around a university-approved curriculum that is uniform across affiliated institutions. This approach tends to emphasise foundational business principles and management theories.
• PGDM: PGDM programs are known for their practical orientation, with a curriculum designed to meet the industry’s evolving needs. These programs often include case studies, industry interactions, and practical projects, offering a more hands-on approach to learning.Read More – CAT Score vs Percentile 2024 – Section-wise analysis of CAT scores and percentiles

3. Duration and Eligibility

Both MBA and PGDM programs typically span two years (PGDM can also be a one-year course) and require candidates to have a bachelor’s degree from a recognised institution. However, specific eligibility criteria can vary. For MBA programs, a minimum of 50% marks in undergraduate studies is usually required, while PGDM programs might have slightly different criteria based on the offering institution.

4. Affordability

• MBA: Generally more affordable compared to PGDM programs. For instance, the MBA program at FMS Delhi costs around INR 1,92,000, making it a more budget-friendly option.
• PGDM: Tends to be more expensive. Institutions like IIM Bangalore and SPJIMR Mumbai charge higher fees, often ranging from INR 17,50,000 to INR 23,00,000.

MBA vs PGDM – Highlights

MBA vs PGDM – Which is better?

The MBA vs PGDM debate can be divided into six parts: the entrance exam, curriculum, fee structure, salary, peer group, and career goals. Let’s explore each one to dispel the myths surrounding the perennial question of which is better, a PGDM or an MBA.

PGDM vs MBA – Entrance exam

It should come as no surprise that colleges offering either of the two also largely accept the same entrance tests. India’s most popular management entrance exam, CAT, is widely accepted by colleges across the spectrum. Other exams, such as GMAT, CMAT, MAT, ATMA, and XAT, are also accepted by a wide range of colleges, notwithstanding the program on offer.

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But it does make sense to check the official websites of your target colleges to figure out which entrance exams they prefer. For instance, ISB only accepts GMAT, while the IIMs only accept CAT (For their flagship MBA programs). Then, there are exams conducted by prominent colleges for their own programs. Symbiosis conducts the SNAP exam for admission to all MBA programs affiliated with Symbiosis International University. Similarly, XLRI conducts XAT, NMIMS holds the NMAT, and IBS conducts IBSAT.

The list doesn’t end here.

There are state-level entrances, too, of which the MAH MBA CET is the most popular. Other states have their own exams. 

Instead of worrying about which exam to study for, choosing a test prep course that lets you study for all of them in one coaching program is best. That way, whatever your position on the MBA vs PGDM debate, you can maximise your chances of getting into a top college.

Types of Entrance Exams for MBA and PGDM degrees

Here’s a brief overview of some of the popular entrance exams for MBA and PGDM courses:

The IMS CATapult programs are designed to help you build your basics in an accelerated timeframe, ensuring you crack not just CAT but also XAT, NMAT, SNAP, and GMAT. With hundreds of live sessions, masterclasses, SimCATs, and full-length mocks for 12+ exams, it is a comprehensive program that will get you over the line for all the best colleges, whether they offer PGDM or MBA.

MBA vs PGDM – Curriculum

This is where things get interesting. One key benefit of offering a PGDM course as opposed to an MBA degree is that colleges retain much more autonomy over their curriculum. However, this is not to say that MBA colleges have outdated or poorly designed curricula.

Under the AICTE, PGDM programs can update, revise, or overhaul their entire curriculum as they see fit. Usually, the curriculum is updated in response to shifts in industry trends and employer requirements. For instance, the introduction of AI to many PGDM programs reflects the growing need to be well-versed in this technology. Moreover, this freedom to design their curriculum also allows them to work with industry veterans to build all-around programs that fill gaps in the job market. They can also introduce many practical and real-life-led credits to give students much-needed exposure.

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Since colleges offering MBAs answer to the UGC, they are not permitted to change their curriculum wantonly. This can lead to rigidity in their approach to curriculum design. However, this has not kept the country’s top colleges from adopting modern curricula that accurately depict the needs of the industry. Additionally, private colleges such as NMIMS and Symbiosis that offer MBA degrees make it a point to update their curriculum every few years, ensuring their cohort remains abreast with the latest and most relevant industry updates.

MBA vs PGDM – Fee structure

As you might’ve noticed, most MBA-offering colleges have relatively lower fees than their younger PGDM-offering peers. This is due to many reasons.

For starters, most UGC-approved universities receive government grants to subsidise operational costs, resulting in lower fees. In comparison, PGDM fees might seem very high. However, students get additional benefits, such as access to State-of-the-Art campuses, unparalleled facilities, foreign exposure, and world-class faculty, each of which adds to the overall development of the students.

Moreover, instead of comparing colleges on the basis of fees, it is much better to measure them according to RoI. Many PGDM programs, especially the top-ranked ones, provide great returns on the high upfront investment.

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MBA vs PGDM – Post-college salary

Graduate outcomes can be among the most contentious parameters for comparing colleges, even within the MBA vs PGDM debate. Fortunately, no measurable difference exists between the salaries offered to PGDM graduates and MBA holders. For instance, the average salary offered to SP Jain (PGDM) grads is around Rs. 33 lakh, while for IIM Bangalore (MBA), it is around Rs. 35 lakh. The difference, if any, is negligible and can be attributed to macroeconomic factors.

The true difference between graduate earnings lies in the reputation of the college, the quality of the program, the roles being offered during placements, industry access, and the grade of the cohort. As a general rule of thumb, the more competitive it is to get into a management program, the better outcomes you can expect.

Top Colleges Offering MBA and PGDM

Here’s a look at some leading institutions offering MBA and PGDM courses in India:

Read More – Top PGDM Colleges in India

MBA vs PGDM – Peer group

As you must’ve read, much of the learning at MBA, as well as PGDM colleges, happens outside the classroom, amongst peers. The level of your peers will play a key role in helping you develop the skills, temperament, and character required to succeed in the corporate world. This statement holds even more true when it comes to entrepreneurship. After all, a well-heeled circle of peers will ensure you have access to resources and talent for your entrepreneurial journey. 

Higher-ranked colleges tend to have better peers, whether they offer PGDM or MBA. This is due to the selectivity and filtration process that ensures a good mix of candidates from various fields and walks of life come together in a class.

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However, you should note that PGDM programs, given their autonomy, tend to skew slightly towards experienced candidates, while MBA programs will have a higher percentage of freshers. While this fact does little to really alter the quality of peer-to-peer interactions, it can play a role.

MBA vs PGDM – Career goals

More than the name of the degree, your career goals should decide which program to take. While we’ve made it abundantly clear that there is little to differentiate between someone with an MBA or PGDM, those looking to pursue higher education should look up the eligibility criteria for their target colleges. Many institutions abroad do not consider a one—or two-year PGDM eligible for their double master’s or PhD programs. 

Apart from this tiny difference, everything else is the same as long as the PGDM diploma is from an AICTE-recognised college. 

MBA vs. PGDM – Which one should you choose?

Long story short, choosing between an MBA vs PGDM should depend less on the name of the degree and more on:

• Career Goals: If you aim for a career that demands strong theoretical knowledge and a formal academic background, an MBA might be preferable. On the other hand, if you are looking for a program that offers practical insights and industry connections, a PGDM could be more suitable.
• Budget Considerations: Given the cost differences, your financial situation might influence your choice. An MBA program’s lower fees can make it a more viable option for many students.
• Institution Reputation: The brand equity of the institution offering the program plays a crucial role in job placements and career prospects. Top institutions, whether offering MBA or PGDM, are highly regarded by employers and can significantly impact your career trajectory.

Now, you can finally lay the MBA vs PGDM debate to rest and focus our energies on preparing for the umpteen number of entrance tests coming up in a few months!