What is the difference between MBA and PGDM?

MBA stands for Masters of Business Administration and PGDM for Post Graduate Diploma in Management. Though both the programs have two years and are offered by prominent B-schools to prepare aspirants for a lucrative management career, there are some significant similarities and differences between the two.

Let's see how the MBA and PGDM are similar:

The MBA and PGDM do not differ regarding acceptance in the industry or for higher studies.

Both programs teach management skills, and it's the quality of education imparted by the b-school, its unique value propositions, track record of its alumni and the value that the graduates bring to the table that matter to recruiters. In fact, in b-schools offering a one-year 'certificate' program in management, also called PGPM or PGP or other names depending on the b-school, recruiters do not differentiate between these students and the PGDM students. Hiring is done purely based on the recruiter's work experience, background, and skill requirements and how the students fit their criteria.

The same can be said for pursuing higher education, such as a PhD or a Fellowship program. The PGDM Diploma is just as valid for pursuing a PhD as an MBA degree is. At the undergraduate level, a degree was always perceived to have a higher value than a diploma. But in the case of postgraduate courses, such as management programs, the quality and value offered by the b-school and the program determine the value and not the nomenclature.

So what are the striking differences between MBA and PGDM?

In short:

Business schools (or private MBA colleges) offering PGDM can revise their curriculum to change business needs and industry behaviour. They can quickly adapt new models, tools and technologies to deliver cutting edge education to their students. Universities undergo such revision time-based, mostly in 3 to 5 years.

Private b-schools offering PGDM courses can also benefit students by inviting visiting faculty worldwide for an enhanced learning experience. In addition to these, business schools that especially offer an on-campus PGDM program also focus on the overall development of students through soft-skill and leadership based courses and activities, extra-curricular and an intense industry interaction through guest lectures.

Suppose you are looking forward to investing two years of your life in any of these highly indulging programs. In that case, you must thoroughly understand their value propositions, offerings and industry perception before making any decision.

The Long Story:

Degree vs Diploma:

• The first and fundamental difference between the two programs is that the MBA is a Degree program, whereas a PGDM is a diploma program. An MBA program is offered by a government or private university or a college affiliated with a university. Only these universities, which come under the University Grants Commission (UGC), can award degrees.
• AICTE offers a PGDM program recognized by b-schools and standalone/autonomous b-schools under the Ministry of Human Resource Development (HRD), which do not come under the UGC. However, it is pertinent to know that the corporate world does not differentiate between them. Graduates from both programs are equally eligible for the same kind of management jobs.
• The 20 existing IIMs, however, under the IIM act of 2017, were declared as Institutions of National Importance and were granted the authority to award MBA degrees, before which they were awarding diplomas just like every private b-school.
• So, instead of the name, you must focus more on significant-quality determinants such as faculty, curriculum, campus, peer group, rankings and accreditations, and placements to determine which program would put you in the searchlight of promising recruiters.

Curriculum:

• MBA programs, in general, have a fixed curriculum and are generally more theoretical in nature. There is a certain rigidity in curriculum revision to maintain pace with changes in the industry and economic landscape. Such modifications take place over a period of 3-5 years. However, private universities like NMIMS and Symbiosis update their curriculum more frequently.
• On the other hand, the PGDM curriculum can be revised or edited at the b-school's discretion, keeping it on par with new industry requirements and standards. This allows the schools to maintain a competitive advantage, and such competition encourages rampant innovation in curriculum and pedagogy. Such programs also have more room for practical application-based learning than pure theoretical learning.
• Any good PGDM program would involve industry veterans in designing the curriculum. These veterans bring foresight that encourages the inclusion of emerging and disruptive technologies such as AI, Design Thinking and Business Analytics into the management curriculum.
• On these lines, one must also note that respective universities conduct MBA exams, and all colleges under a particular university would have the same exams. In the case of IIMs and private b-schools, the exams are guided by the schools themselves, who, to a great extent, have control over their evaluation criteria.

Teaching Methodology:

• A high-quality PGDM program offers a lot more than classroom teaching. Case study pedagogy has high importance in PGDM courses as these cases help understand the application of concepts in real-time and are based on classic and contemporary business cases that have shaped the industry over the years. The learning takes place outside the classroom, in the form of extra-curricular activities, social initiatives, events, competitions, etc., for developing numerous soft skills essential for management professionals.
• Students in a PGDM program also get a chance to interact with multiple thought leaders & CXOs during intense industry interface programs, which help them gain industry perspective and blur the lines between theory and practical application. For instance, the PGDM program offered at Great Lakes Institute of Management includes live projects, summer internships with leading corporates, and regular guest lectures, conclaves and symposiums, which help develop strong leadership, managerial and analytical skills, which are crucial for a successful management career.

Fee Structure:

• Since MBA programs are offered by universities and colleges, most of which obtain grants from UGC and government subsidies, their fees are on the lower side. Faculty of Management Studies (FMS), one of the top MBA colleges in India, under Delhi University, charges INR 1.92 lakhs for its two year MBA program.
• A PGDM program undoubtedly is a considerable investment of money. Since institutes and autonomous business schools running PGDM programs, primarily on-campus, incur all their costs by themselves, the effect is seen in the form of much higher program fees. But, these fees are utilized to provide state-of-the-art infrastructure, enabling global faculty exposure, delivering cutting edge curriculum, the grooming students to bag highly coveted jobs. Several banks and financial institutions offer loans at reasonable interest rates for high-quality PGDM programs.

Entrance Exam Criteria:

• Both programs accept various competitive tests such as CAT, MAT, GMAT, XAT & CMAT. In the case of MBA programs, many universities and colleges also get scores obtained in respective state-level tests such as MAHCET, TSICET, PGCET & TANCET. A few top schools also conduct their difficulties, such as XAT (XLRI), SNAP (Symbiosis) & IIFT EXAM (IIFT).
• There is no one-size-fits-all concept in the case of entrance tests. The Indian School of Business (ISB), for instance, does not accept CAT scores, which is the most widely accepted one in India. PGDM schools may also not have a definite entrance score cut-off. Still, safe score criteria since shortlisting would also depend on other factors such as past academic and professional performance, achievements, diversity of background, and so on. These test scores are a crucial entry point into schools of your choice. Therefore, you need to know the preferred test scores at those schools and their cut-off or safe score requirements and prepare accordingly.

Your Goal:

• Finally, what matters is your ultimate goal in life. What is it that you want to do with your management qualification? What kind of career do you see for yourself in the future? This should be the primary deciding factor for the choice of your program. You may also ask yourself what your preference is regarding the nature of the program (on-campus or otherwise), location, and immediate career outcomes? You might also want to consider how much you are willing to spend on it.
• A PGDM course from any top school will surely land you an enriching career. PGDM graduates might have some edge because of the program's pedagogy and close industry interaction, helping them remain more pragmatic and relevant in the industry for longer. However, an MBA from a renowned college or university with a long-running reputation in the industry can also help you achieve specific immediate career goals for a fraction of the cost.