These days, more often than not, we come across the term MBA and PGDM that together are quite misunderstood. And, if we combine that with the taboo around the word “Diploma”, we have a big confusion as a result. This confusion is not because of the particular word but around what that word entails when offered by some of the best B-schools of the country. In this article we shall try to clear the confusion about the difference between MBA & PGDM, which are in effect two of the major management courses offered in India.
MBA Vs. PGDM
MBA, abbreviation for Master of Business Administration, is a Post Graduate Degree in Management. On the other hand, PGDM stands for Post Graduate Diploma in Management. One may wonder why some colleges and universities offer MBA while others offer PGDM. The answer is simple:
· MBA is basically a Master’s degree and only recognized universities or colleges affiliated with such universities are allowed to offer the degree in Business Administration. Aforementioned universities follow one single curriculum designed for the course and offer other major degrees like Bachelor’s and Doctorate.
· PGDM, on the other hand, is a course offered by colleges which are not affiliated with recognized universities or are not authorized to offer degrees. And therefore they offer Diploma courses mostly approved by the Indian statutory body called AICTE, which in a broader view come at the same level as MBA.
We may then come to the inference that maybe we should always go for an MBA because it will have more value.
This conclusion arises due to the ill-found taboo woven around the word “Diploma” which in Indian context is not considered equivalent to a degree. But one surprising fact missed out by almost everyone is that there are several major renowned colleges that are autonomous, not affiliated to any college and provide PGDM or PGP. These include top notch colleges like the IIMs and XLRI. These institutions never offer MBA; instead they offer Diplomas in Management, but they are the most sought after colleges in India for management courses!
These autonomous colleges have advantages of their own. By virtue of the fact that they are not affiliated with any university, they are not bound to follow any particular curriculum and therefore they remain updated with the current scenario of industries and management and thereby increase the quality level of their education. Not that the universities are outdated but their curriculum is updated once every 3-5 years and with the ever growing industries, keeping abreast with month-to-month changes in surrounding has become essential to keep up. Which is why autonomous colleges having a good brand name – like Asian Business School (ABS), Noida – are preferred even if they offer PGDM over other MBA offering colleges.
So the question arises, which one is better in the longer run – MBA or PGDM?
There are two answers to this question:
Indian & Global Job Context:
In the matter 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-schools offer PGDM. Placements, however, are dependent 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 while very limited colleges offer MBA. The performance and appraisals are not based on a person’s credentials but are solely based on performance.
Educational Context:
On the other hand, 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, an 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.
In the final analysis, it can only be said that both MBA and PGDM have their respective merits and demerits, and a management aspirant will need to clearly assess their own interests and priorities in making their personal choice between the two.
