MBA vs PGDM: Understanding the Key Differences

With the global business landscape evolving rapidly, the demand for skilled management professionals is at an all-time high. According to a recent report, employment in management occupations is projected to grow faster than average from 2023 to 2033. On average, about 1.2 million openings are projected each year in these occupations due to employment growth and the need to replace workers who leave the occupations permanently. Aspiring leaders often choose between pursuing an MBA (Master of Business Administration) or a PGDM (Postgraduate Diploma in Management), two prestigious paths that uniquely shape careers.

While both programmes aim to develop leadership and managerial skills, they differ in curriculum design, industry alignment, and recognition. The MBA offers a globally structured approach, while the PGDM emphasises industry-specific, practical learning. This blog explores the differences between an MBA and a PGDM, helping you identify the right course to align with your career goals, whether it's excelling in international markets or gaining an edge in dynamic industries.

Degree vs Diploma: A Quick Comparison

The MBA is a degree, while a PGDM is a diploma, so to understand whether doing an MBA is better or a PGDM, knowing degree vs diploma is essential. It will help you to choose your options wisely.

Who Offers Degree & Who Offers Diploma?

This is a very important question that may come into anyone’s mind: who offers a degree and who offers a diploma? While a degree and diploma have some basic differences, they both help you to get better job opportunities and excel in your industry.

Coming to the core of the question, a degree is basically offered by any university or institution that is recognised by UGC and AICTE. On the other hand, a diploma is offered by Vocational schools, community colleges, and autonomous training centres.

What is an MBA?

The Master of Business Administration is a postgraduate degree available in universities or institutions affiliated with recognised universities. It is also a globally known programme that encompasses theoretical knowledge and takes a structured approach to business education. The admission criterion for an MBA generally includes an undergraduate degree coupled with competitive scores in entrance tests like the CAT, GMAT, or XAT.

What is PGDM?

The PGDM (Post Graduate Diploma in Management) is a diploma that autonomous institutions have accredited under the All India Council for Technical Education (AICTE). Even though it is generally referred to as a diploma, its industry acceptance is similar to an MBA. The curriculum revolves around the industry, emphasising practical learning and skill-based knowledge.

Differences Between PGDM and MBA

MBA vs PGDM: Eligibility

While the eligibility criterion is majorly the same for both programmes, it can vary depending on the specific university or institute based on the cut-off. The usual eligibility criteria for MBA and PGDM courses are given below:

• To get admission to MBA and PGDM, candidates must have passed their bachelor’s degree with not less than 50% aggregate marks in any field.
• You need to clear the national or university-level entrance test to get admission into the premier B-schools in India.
• Some management programmes also require prior work experience before admission.

MBA vs PGDM: Admission Process

The MBA admission process generally involves multiple stages:

1. Entrance Exams: Common tests, such as  CAT, GMAT, XAT, CMAT, NMAT and more, assess candidates’ aptitude.
2. Academic Performance: Universities consider UG scores.
3. Group Discussions: Shortlisted candidates participate in GD sessions to showcase communication and leadership skills.
4. Personal Interview: The final stage often involves an interview to evaluate candidates’ personalities and aspirations.

Admission to PGDM programmes follows a similar structure but often places additional emphasis on work experience and industry exposure. Key steps include:

1. Entrance Exams: PGDM aspirants must pass exams like CAT, GMAT, or MAT.
2. Academic Record: Institutions assess past academic performance.
3. Work Experience: Many PGDM programmes prefer candidates with prior professional experience.
4. Group Activities: Case studies, role plays, or group tasks may be included.
5. Personal Interview: This stage evaluates a candidate’s motivation and career goals.

MBA vs PGDM: Syllabus

The syllabus of an MBA programme is designed by the university with which the college is affiliated. Below are a few topics covered in the MBA syllabus.

The PGDM syllabus covers practical, more updated concepts than the MBA syllabus, which changes rapidly based on industrial needs.

Listed below are some of the main topics that are covered in the PGDM syllabus:

MBA vs PGDM: Fees

• MBA courses are generally less expensive than PGDM courses because government-funded universities and colleges offer them.
• PGDM courses are more expensive than MBA programmes because the institutions that provide them often cover all the expenses independently.
• The PGDM course fee ranges from INR 10,00,000 to INR 35,00,000, whereas the MBA course fee ranges from INR 10,00,000 to INR 25,00,000.

MBA vs PGDM: Jobs & Salary

Below are the top job options available after completing MBA and PGDM courses with average annual salaries.

Jobs and Salary After an MBA

Given below is the list of top job profiles and the average salary after completing an MBA programme:

Jobs and Salary after PGDM

The top job profiles available after completing a PGDM course are listed below:

Which is the Better Option: MBA vs PGDM

The debate over which programme is better, MBA or PGDM, largely depends on individual goals and priorities. While both offer excellent career opportunities, there are compelling reasons why an MBA is often considered the better choice:

Global Recognition:

• MBA is a degree programme awarded by universities, making it globally recognised and preferred for international job opportunities.
• PGDM, being a diploma, could be less accepted worldwide, whereas it is appreciated in India.

Cost Effectiveness:

• MBA is relatively cost-effective compared to PGDM, while the institutes that offer PGDM courses are private organisations.

Structured Curriculum:

• MBA programmes have structured curricula standardised by universities with quality consistency throughout.
• PGDM courses are rather flexible and differ from institute to institute.

Higher Education Opportunities:

• MBA is indispensable for higher studies such as doctoral studies (Ph.D.).
• PGDM graduates face challenges if they want to move into academia or research roles.

Altogether, an MBA is a better option for those who wish to be recognised globally. It is cost-effective and structured for higher education.

Why Choose BML Munjal University (BMU) for an MBA?

The MBA programme offered at BML Munjal University offers a dynamic blend of innovative curriculum and industry integration, ensuring your holistic development to tackle real-world challenges in today’s competitive business landscape. Your MBA journey at BMU is not just about acquiring the knowledge of business; it is about developing a mindset of ambition and innovation to break conventional boundaries and reinvent how businesses run today. Given below are the MBA specialisations offered at BMU:

• MBA in Business Analytics
• MBA in Finance
• MBA in Marketing
• MBA in Human Resource
• MBA in Operations & SCM
• MBA in Strategic Management
• MBA in Entrepreneurship

Every of these MBA specialisations is steeped in lateral thinking and takes a multi-disciplinary approach to turn you into entrepreneurs, thought leaders, and innovators who are capable of developing bold strategies that drive impact.

To Sum Up

Whether you should go for an MBA or a PGDM is not a question of which is superior but which suits your needs. Both are equally useful in their own ways. An MBA would be the best option if you want to get recognition all over the world. On the other hand, if you want specific industry knowledge through the ever-changing curriculum, PGDM is a suitable course. To make the right decision, look for available programmes and analyse your career plans to select the right option.

FAQs

How are the MBA and PGDM degrees different in terms of recognition?

The primary difference lies in the certification type. MBA is a degree programme awarded by universities and is globally recognised, while PGDM is a diploma offered by autonomous institutions and is highly regarded, particularly in India.

Are there any entrance exams specifically for PGDM programmes?

Yes, exams like CAT, XAT, and MAT are generally considered for PGDM admissions.

Which is better, PGDM vs MBA?

They both offer different kinds of skills, training, and career opportunities, so it depends on person to person who wants to pursue PGDM and who wants to pursue an MBA.

Which MBA or PGDM programme is more suitable for someone looking for international opportunities?

Due to its global recognition as a degree programme, the MBA is more suitable for international opportunities. Although well-respected, the PGDM might face limitations in some global markets.

Is PGDM also known as an MBA?

No, PGDM and MBA are different courses.

Why is an MBA considered more cost-effective than a PGDM?

MBA programmes are generally more affordable. PGDM programmes, provided by private and autonomous institutions, tend to have higher tuition fees.

Which is more costly, PGDM vs MBA?

The cost depends highly on the institute which is offering it. Generally, PGDM programmes are more costly than MBA programmes.

Can I switch from a PGDM to an MBA programme or vice versa?

Generally, it is not possible to switch between them because they are different courses. However, some institutions may transfer credits.

Can a PGDM graduate pursue a PhD?

In most cases, a PGDM graduate cannot directly pursue a PhD unless the diploma is equivalent to an MBA, per AIU guidelines. An MBA degree is typically required for doctoral programmes.

Which programme is more industry-relevant, MBA vs PGDM?

A PGDM programme focuses extensively on industry-specific skills, and they generally have an updated syllabus.

Are PGDM and MBA the same?

No, a PGDM is a diploma course, also known as a Post Graduate Diploma in Management, while an MBA is a degree course, also known as a Master of Business Administration.