What is the difference between PGDM and MBA?

While MBA is a degree courses, PGDM is a diploma. Read this article to know more differences between MBA and PGDM.

"What is the difference between MBA and PGDM?” is a very important question that every Management aspirant must ask before choosing a course. 

Post Graduate Diploma in Management (PGDM full form) or Post Graduate Programme in Management (PGPM full form) and Masters in Business Administration (MBA) are both management courses at Master’s level. Both the courses have a commercial orientation and there is not much difference between PGDM and MBA.

“MBA and PGDM are both business-orientated courses. The main aim of both the courses is to equip a person who wants to move up in the hierarchy or enter the management field,” says expert Nikhilesh Mathur. 

“For people who are interested in the corporate world or want to be an entrepreneur, PGDM would be a more suitable choice,” further says Mathur.

While both the courses have the same outcomes in terms of employment perspective, there are some subtle differences such as degee, fees, etc. Below, we have listed five differences between PGP(M)/PGDM and MBA:

1. PGDM vs MBA

At the end of a PGP and PGDM course, the candidate is offered a Diploma whereas at the end of an MBA programme, the candidate receives a Degree.

Many students think that a Diploma course does not hold the same value as a Degree course but that is not true. Many Indian Institutes of Management (IIMs) and other top B-Schools such as XLRI, Jamshedpur and SP Jain Institute of Management and Research, Mumbai offer PGP or PGDM courses. Most of these institutes are autonomous bodies (not affiliated to any University). Between a PGDM and an MBA, there is only the difference of nomenclature but not of professional value.

Both MBA and PGDM are highly valued in the job market as they are same in terms of course accreditation, curriculum and pedagogy. Another key factor is the institute. For example, a PGDM course from XLRI Jamshedpur will have more professional value than a degee course from a state university.

2.MBA vs PGDM: Syllabus

In most cases, the MBA course curriculum is designed by the university. The core MBA syllabus (and sometimes even elective subjects) will be pretty much the same in two MBA colleges under the same university. Even though the PGDM syllabus is no different from the MBA syllabus, since PGPM or PGDM courses are determined by the individual institute, it gives them certain flexibility to design the course curriculum. The MBA syllabus undergoes change according to industrial requirements periodically. Universities tend to lag behind and change their syllabus after a few years.

3.MBA vs PGDM: Susceptible to Fraudulence

Since PGP or PGDM courses are offered by autonomous bodies, students need to be careful while taking admission. Many smaller colleges and institutes make claims but do not have proper accreditation status. MBA degrees are conferred by varsities, and hence there’s a lower chance of fraudulent claims. Management aspirants should look for genuine accreditations. Apart from UGC recognition, management institutes are accredited by NAAC, AACSB, AMBA and Equis. 

Also Read: Understanding MBA Accreditation

4. MBA vs PGDM: Focus

Both MBA and PGDM courses have common core subjects. However, some experts claim most MBA courses focus more on theoretical and technical aspects of management rather than adopting a practical approach. PGP or PGDM courses on the other hand, have an industrial orientation and focus on skills-based on market requirements.            

5. MBA vs PGDM: Cost

It has been observed that most MBA courses have lower tuition fees as compared to PGP or PGDM courses. This may be so because mostly government universities offer MBA degrees. These universities receive financial aid and grants from the government, making the degree cheaper for the student. In case of a PGP or PGDM degree, students have to bear the cost of the entire programme. However, this is not an ironclad rule. There are insitutes which charge high tuition fees like the IIMs.

Difference between MBA and PGDM

There are several other factors which make MBA and PGDM different entities. The below table indicates the basic differences between MBA and PGDM:

Colleges Offering MBA or PGDM

Here is the list of IIMs and other Top Management Colleges Offering MBA and PGDM/PGP courses:

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