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PGDM vs MBA: Know Which Degree Holds More Value?

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Are you considering a career in business management? If so, you may have come across the terms PGDM and MBA. Having a dilemma about PGDM vs MBA? Confused while jotting down the differences between PGDM vs MBA, while opting for management studies? While both are postgraduate business programs, some key differences between them are worth exploring before making a decision. Looking for these differences? You need to read this blog post till the end to find the right answer!

When comparing MBA (Master of Business Administration) and PGDM (Post Graduate Diploma in Management), both are two-year courses aimed at honing management skills. However, they differ significantly in certain aspects.

MBA is a degree program offered by recognized universities, whereas PGDM is a diploma course provided by autonomous institutes. One of the key distinctions is that MBA programs tend to have a more theoretical approach, focusing on academics and research. On the other hand, PGDM programs are more industry-oriented, emphasizing practical skills and current industry trends.

The curriculum of both courses is known for its flexibility and adaptability to meet industry demands promptly. Another notable difference is in terms of placement rates. Reports indicate that PGDM candidates often have a higher placement rate compared to MBA graduates. This could be attributed to the industry-focused nature of PGDM programs, which better prepare students for real-world challenges and job roles.

Wait, my dear friend! That’s not all to understand PGDM Vs MBA! 

What is PGDM & MBA?

PGDM and MBA are both postgraduate programs in business management. These courses provide students with the knowledge and skills necessary to succeed in the field of business.

PGDM stands for Post Graduate Diploma in Management. It is a two-year program that is offered by autonomous institutions that are recognized by the All-India Council for Technical Education (AICTE). The curriculum is designed to provide students with practical and industry-oriented training and often includes a range of electives to allow students to specialize in a particular area of business. The PGDM program is known for its flexibility and adaptability to changing market demands.

MBA, on the other hand, stands for Master of Business Administration. It is a two-year program that is offered by universities and colleges that are recognized by the University Grants Commission (UGC) or other government bodies. The curriculum is designed to provide students with a broad understanding of business concepts and theories and often includes a range of core courses in finance, marketing, operations, and human resources. The MBA program is known for its academic rigor and emphasis on critical thinking and problem-solving.

Know: Tips for Choosing the Right MBA Specialization

Both PGDM and MBA programs offer students the opportunity to develop their leadership, communication, and management skills, and provide a pathway to a variety of careers in business, including consulting, finance, marketing, and operations. 

PGDM Vs MBA: Major Difference

Choosing between PGDM Vs MBA program can be a crucial decision. Understanding the major differences between these two options is essential to make an informed choice. Here’s a comparison highlighting the key disparities between PGDM and MBA programs.

ParametersMBAPGDM
Full FormMaster in Business AdministrationPost Graduate Diploma in Management
Course LevelPost Graduate DegreePost Graduate Diploma
Duration2 years2 years
EligibilityBachelor’s degree with 50% marksBachelor’s degree from a recognized institute
Popular Entrance ExamsCAT/MAT/XAT/ATMA and state-level examinationsCAT, MAT, CMAT, TSICET, MAH-CET, etc. and other national & state level exams
AccreditationUniversity Grants Commission (UGC)All India Council for Technical Education (AICTE)
Course Syllabus Prepared by universities, less frequently updatedDynamic, updated as per industry needs, approved by AICTE
FocusTheoretical and technical aspectsPractical knowledge and industrial orientation
AffordabilityMore AffordableExpensive

PGDM Vs MBA: Which is Better? 

After defining the main differences between MBA and PGDM, you need to check the admission requirement criteria for MBA and PGDM to decide which course suits you the best. You need to keep the below-mentioned points while selecting any of these programs:

  • Check the fees’ structure and compare which matches your budget.
  • Compare the curriculum of both programs. In most cases, the MBA curriculum is designed by the university. The main syllabus (and sometimes elective courses) will be very similar to the two MBA colleges which are accredited by the same university. However, PGDM courses are determined by separate institutions. This provides some flexibility in the subject curriculum and thus it keeps on changing.
  • Analyze what type of knowledge you want to pursue. PGDM offers practical knowledge on the other hand MBA offers theoretical knowledge of the concepts of management.
  • Check the authentication of the College or Institution. Since the PGDM course is offered by many private organizations or autonomous bodies, you need to be very careful while taking admission for this course. Many colleges or institutes claim but do not have the appropriate accreditation. MBA degrees are offered by universities, so there is less chance of fraudulent claims. You should check the actual accreditations on the official websites of the colleges.

Now, let’s have a comparison based on some other factors that will surely help you gain a clear understanding of PGDM Vs MBA.

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Eligibility comparison: PGDM vs MBA

Both MBA and PGDM are popular choices for individuals seeking advanced education in business and management. However, there are subtle differences in their eligibility criteria that aspiring candidates should be aware of.

  • Both PGDM and MBA courses require candidates to have completed a bachelor’s degree from a recognized university or institution.
  • Candidates must have secured a minimum of 50% aggregate marks in their bachelor’s degree to be eligible for admission to MBA or PGDM programs.
  • To enroll in renowned business schools in India offering MBA or PGDM courses, candidates need to qualify for national-level or university-level entrance exams such as CAT, MAT, XAT, or GMAT.
  • While not mandatory for all programs, some management institutes may require candidates to have prior work experience before admission, especially for executive MBA or PGDM courses.

These eligibility criteria ensure that candidates possess the necessary academic background and aptitude to excel in rigorous management education programs like MBA and PGDM. 

Also, read: MBA Entrance Exams

PGDM vs MBA: Top Colleges

Here’s the list of top colleges offering MBA & PGDM programs in India: 

Colleges for MBAColleges for PGDM/PGP
IIM AhmedabadIIM Calcutta
IIM BangaloreIIM Lucknow
IIM RanchiIIM Kozhikode
IIM JammuIIM Indore
IIM KashipurIIM Shillong
IIM SambalpurIIM Rohtak
IIM UdaipurIIM Bodh Gaya
IIM AmritsarIIM Visakhapatnam
IIM NagpurIIM Trichy
IIM SirmaurSPJIMR
XLRI JamshedpurNMIMS
MDI GurgaonIMT Ghaziabad
FMS Delhi UniversityIIFT Delhi
JBIMS MumbaiSymbiosis International Deemed to be University

Also, read: MBA Colleges in India

Cost of Education: PGDM vs MBA

When comparing the cost of education between PGDM Vs MBA courses, a notable difference arises due to their institutional structures. MBA programs, typically offered by universities and colleges, benefit from government funding, making them relatively less expensive. On the other hand, PGDM courses, provided by autonomous institutions, bear their entire cost, leading to higher fees.

The fee range for PGDM courses spans from INR 10,00,000 to INR 35,00,000, reflecting the financial burden of self-sustainability. In contrast, MBA course fees range from INR 10,00,000 to INR 25,00,000 due to the support received from government funds in many cases. This cost disparity often influences students’ choices based on their budgetary considerations and the perceived value of the program. 

Which is Best for Placements: PGDM Vs MBA?

When comparing placements for PGDM versus MBA programs, several factors come into play. MBA programs from prestigious institutions like IIM Calcutta, ISB Hyderabad, and IIM Bangalore offer high average annual salaries, often exceeding INR 30 lakhs. These programs attract top recruiters, providing access to dream companies for MBA graduates.

On the other hand, PGDM programs, such as those offered by XLRI Xavier School of Management and SP Jain Institute of Management and Research, also boast competitive average annual salaries. While some PGDM institutes may offer lower salaries compared to MBA programs, they still provide opportunities for substantial growth and career advancement.

PGDM vs MBA: Salary Comparison in India

When comparing the salary of MBA & PGDM graduates in India, several factors come into play. According to payscale.com, on average, a PGDM graduate can expect to earn between Rs. 6 lakhs to Rs. 12 lakhs per annum, whereas an MBA graduate’s average salary ranges from Rs. 5 lakhs to Rs. 18 lakhs per annum. These figures, however, are subject to significant variation based on factors like the institution’s reputation, the industry of employment, the level of experience, and the specific job role.

PGDM programs often offer more specialized and industry-focused curricula, leading to quicker entry into the job market. On the other hand, MBAs may have a broader scope and may take longer to yield higher salaries due to the emphasis on leadership and strategic management skills. Ultimately, individual skills, experience levels, and career trajectories play crucial roles in determining actual salary figures for PGDM and MBA graduates in India.

Final words!

It is always recommended that you include all the factors when deciding between a PGDM vs MBA. No wonder, an MBA has a great opportunity, but PGDM also comes with great benefits. So, calculate carefully when making an informed decision for a successful career beforehand. We hope that this post on PGDM vs MBA has helped you understand the differences between these two. 

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FAQs

PGDM Vs MBA: What are the similarities?

PGDM is a Diploma course and an MBA is a degree course, which is why we can’t say that PGDM and MBA are completely the same. However, in terms of contextual studies and the curriculum, the MBA and PGDM are very similar. Also, the duration of the PDGM program is 1 to 2 years depending on the program type. On the other hand, the duration of the MBA program is 2 years.

Is PGDM equivalent to an MBA?

PGDM and MBA are both postgraduate programs in business management, but they are not equivalent. While both programs provide students with the knowledge and skills necessary to succeed in the field of business, the curriculum and course structure of PGDM and MBA programs can differ significantly. PGDM programs are often more flexible and industry-oriented, while MBA programs are more academic and provide a broad understanding of business concepts and theories.

MBA or PGDM which has more value?

The value of an MBA or PGDM depends on factors such as the institution’s reputation, curriculum, faculty, and individual graduate skills/experience. Both can lead to business careers. Value varies based on career goals, learning preferences, and the institution’s reputation.

Are PGDM and MBA programs accredited differently?

Yes, PGDM programs are accredited by the All-India Council for Technical Education (AICTE), while MBA programs are accredited by the University Grants Commission (UGC) or other government bodies.

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