PGDM VS MBA
In today’s challenging and competitive world, the need to create a competitive class of Global Managers has unequivocally surfaced. Post Graduate in Diploma Management (PGDM) and MBA are two courses which are helping for creating the same.
Most managers who decide to pursue management studies are very often confused. The ROI factor leads to a very limited mindset for most i.e. The want of maximum return on fees through high pay packages as an outcome. We see n no. of people in the chase for getting enrolled in the country’s top B-schools with a very basic dilemma of an MBA from a recognized university or PGDM (Post Graduate Diploma in Management) from an institute.
Let us understand the two broad segments defined by the governing body AICTE (All India Council for Technical Education). The degree given by universities or an institute affiliated to a particular university is called as a “Masters” degree. The degree given by the AICTE recognized autonomous institutes are called Post Graduate Diploma in Management (PGDM). However there was no intention to create two different levels and it does not determine the superiority of one over the other. Diploma and the other similar degrees such as PGDBM, PGPM, and PGDIM are currently not mentioned in the post graduate programmes management list of AICTE. Thus students who are pursuing programmes not approved by the AICTE may find it difficult if they wish to seek Government employment or pursue higher studies abroad.
The main reason why postgraduate courses are named as PGDM is because when an Institute is an autonomous body (meaning it is not affiliated to any University) and conducts management courses then such Institutes cannot offer MBA degree. Even IIMs, XLRI's doesn't offer MBA degrees they only give PGP Diploma or PGDM since they are autonomous and independent bodies. In case of MBA, the colleges are affiliated to a University and Universities are controlled by University Grants Commission (UGC) and the colleges may also get accredited by AICTE. According to a recent Supreme Court verdict, UGC recognized MBA programmes need not have AICTE approval.
Apart from the technical ‘name’ differences in the degrees, both these courses are designed for promoting an analytical and inquiring mind, which needs appropriate skills, right knowledge and the right attitude in promoting developing capabilities to control and manage an enterprise to meet global standards.
Moving ahead, let us discuss few other observed differences.
1. MBA focuses more on the theoretical aspects of management and is exam-oriented as it is run within the university norms hence less experimentation capabilities held by an institute. PGDM often focuses on soft-skills and is very industry oriented. The program generally is designed for people who have the general awareness of organizations and the business situations who need managerial knowledge to be applied real time. Hence the curriculum for PGDM is flexible because autonomous institutes do not have to follow university standards, but the curriculum for MBA needs time to be changed.
2. MBA is more affordable than PGDM as its fee structure is in accordance with university standards.
3. An MBA helps in developing technical skills and business knowledge whereas a PGDM prepares graduates for senior level positions in an industry with a broader scope of employment if not a higher pay scale.
One of the major reasons behind doing PGDM is that, today various universities across India are rigid towards making curriculum changes as per the changing demand & need of industries although both these degrees have particular sectorial dominance which sometimes can be beneficial . For example, though MMS in retail management or MBA in Financial Markets which are two of the fastest growing segments one can be placed with a handsome pay structure unlike pursing a PGDM in Finance or Retail.
When we speak about pursuing higher studies such as doctorate, a PGDM degree from AICTE recognized institutes can be useful. You can also pursue your education in any international university or college but sometimes you may be required to get an equivalence certificate from the ‘Association of Indian Universities’ because very often the International Universities are not aware of the PGDM concept.
Moving on to more factors affecting the decision for pursuing these degrees, one might consider affordability, college environment, professor backgrounds, internships, tie-ups with industry etc. As far getting bank loans or applying for Government jobs is concerned one must consider ‘validity’ of either of these degrees. One can have a look at the AICTE’s website and check the name/existence/details/facilities etc of an institute as there are many ‘fake institutes’ existing even today. Information of the college as previous employment of the faculty, their work history, current consulting and training clients, papers written etc should also be seen by visiting their website. Visiting the colleges and meeting the faculty can also help making a better selection for this degree.
To conclude, both these degrees are equal as far as industry is concerned as they recognize talent from an institute of repute rather than bothering whether the person is an MBA or PGDM. In simple terms PGDM is simply a more professional approach and MBA deals more into academic part of the management. Both courses can provide you jobs in public as well as private sectors.