What is the difference between an MBA and a PGDM?
The expanded form of MBA is Master of Business Administration and that of PGDM is Post Graduate Diploma in Management. As per Indian Law, a degree can be offered by an institution only if it is affiliated to a University. Autonomous bodies that run independently cannot offer an MBA. They can offer either PGDM or PGP as in the case with IIMs, XLRI, and the like. PGP is a Post Graduate Program in management. As per the fee is concerned, an MBA is more affordable as it follows the university fee structure and the activities are confined to the university curriculum.
Comparison of MBA and PGDM
| MBA | PGDM |
|---|---|
| MBA courses follow the syllabus of the respective University | Autonomous colleges like IIMs or XLRI, which offer PGDM/PGP programs, follow their own syllabus |
| The MBA programs are recognized by the University Grants Commission (UGC) | Government accreditation agencies like AICTE approve Diploma programmes(like PGDM) |
| MBA programs prepare the candidate for government-oriented and conventional managerial jobs | PGDM programs equip the students to handle high-profile management posts in high-end business ambience |
| MBA has a more affordable fee structure | PGDM programs are costlier |
| The syllabus of the MBA is updated over a longer period | The syllabus of PGDM is updated frequently at the discretion of the B school and the industry needs |
| MBA courses are more theoretical and academic. | PGDM programs are industry-oriented and practical |
| MBA has 2 year course duration | PGDM has a 2-year course duration, some autonomous colleges provide PGDM programs for one year also. |
| To pursue a Doctoral degree MBA course structure is best as it is a master's degree with academic emphasis. | PGDM programs generally have an industry & career emphasis |
Syllabus & Industry Interface
The syllabus of MBA and PGDM programs is generally the same, but the former is more theoretical & technical and the latter is practically oriented with strong industry connections. To be clearer, the MBA is exam and academic-oriented, whereas PGDM/PGP is industry-oriented with a focus on soft skill development.
One advantage of autonomous colleges like IIMs or XLRI, which offer PGDM/PGP courses, is that they can follow their syllabus and update the syllabus as per the changing industry needs. This way they can keep the trend of the day without losing standards and credentials. Keeping the course industry relevant attracts better placements in the industry and improves the marketability of the course. It is to be noted that a big majority of top business schools in India offer PGDM or PGP and not MBA. Normally the PGDM programs equip the students to handle high-profile management posts in high-end business ambience. For teaching and traditional management roles in industry and business MBA is preferred.
Salary Package
The salary package of successful candidates is mainly dependent on the name and brand of the MBA college in Bangalore rather than on the name of the degree. The trend of the salary in later years of the career is largely determined by the capability and efficiency of the employee rather than their alumni status or the name of the degree.
Higher studies
When it comes to higher studies it is better to have an MBA as it is a master's degree, and PGDM is a postgraduate diploma. Even though both come within the outline of management, the name matters in the upper strata of education. PGDM/PGP Diploma of one-year duration which is not equivalent to an MBA is not eligible for Ph.D. programs, whereas Diplomas with two years duration and having approval from the Association of Indian Universities (AIU) make an institute's PGDM/PGP course equivalent to an MBA.
