MBA or PGDM, which has more value?

Things expire with the time, and that might be true with the MBA until and unless new life is injected into it. MBA is an old version for those wishing to pursue management studies; a two-year diploma course, PGDM, Post Graduate Diploma in Management, sounds better. Generally, the PGDM course is far more industry-relevant and practical as far as the job market is concerned.

What is PGDM?

Post Graduate Diploma in Management is an AICTE (All India Council of Technical Education) approved program with a duration of 2 years. Approximately 500 institutions are approved to offer PGDM in India by AICTE. These approved institutions design their own curriculum, upgrade it as and when required, conduct their own examinations, and evaluate their own students. Generally, curricula are designed keeping in view the industry demand, so that students can be placed well.

Also read:- Best PGDM colleges in India

What is AICTE?

AICTE or All India Council for Technical Education is a Central Government body and council for controlling and approving Technical and Management education, under the Ministry of Human Resource Development. AICTE was established in 1945 as an advisory body and, later on, in 1987, was awarded statutory status by an Act of Parliament. AICTE is liable for the proper planning and synchronized development of the technical education and management education system in India.

What is an MBA?

MBA or Master's in Business Administration is a UGC (University Grants Commission) approved post-graduation degree program that can be offered by Universities. The course duration is two years. Most of the universities' affiliate colleges and permit them to teach the MBA course. There are approximately 5500 universities and colleges offering this course pan India. Generally, most of the universities change their curriculum after 5 to 10 years. This makes the course irrelevant and redundant when we talk about the placements. Students generally get low salaries as compared to their counterparts in PGDM.

Also Read:  Top MBA Colleges 

What is UGC?

UGC or University Grants Commission of India is also a central Government body set up by the act of parliament in 1956 under the Ministry of Human Resource Development. UGC is responsible for the coordination, determination, and maintenance of standards of higher education. It recognizes universities in India, and grants funds to such recognized universities and colleges.

The legal difference between MBA and PGDM:

Both the bodies (AICTE and UGC) are formed by the Act of Parliament for the cause of higher education. So the programs approved by these bodies have equivalent legal acceptance. That means PGDM or MBA both are postgraduate programs and have the same legal equivalence as for Government jobs or enrolling for a Ph.D. is concerned. Some universities, while enrolling PGDM students for Ph.D., may demand an equivalence certificate that can be easily obtained from AIU or the Association of Indian Universities.

Also Read: TOP 50 BUSINESS SCHOOLS OFFERING PGDM/MBA

Difference between PGDM and MBA:

• PGDM course is run by institutions that have total responsibility for selecting students, designing the course curriculum, training them, evaluating them, and finally placing them. While an MBA, the course is designed by universities and taught by their affiliated colleges. Here is the gap! Students start learning an MBA course like an MA in history and with the focus of passing the program. Also, the universities don’t change their syllabus for decades. MBA students during Job interviews find it difficult to answer the questions as the interviewers generally ask the questions on the latest trends. While the PGDM being a single-window program that makes the student better skilled and updated with the latest market trends.
• MBA is more theoretical , while PGDM is more practical. This also gives an edge to PGDM students while facing job interviews.
• I have been a professor and placement Chair at one of the prominent B-Schools. We keep on having pool campus drives at colleges, both for PGDM and MBA students of different colleges and universities. In reality, I found approximately 30% of MBA students get selected for the same job, whereas 70% of PGDM students were taken in.
• PGDM is offered by app 500 B Schools, while MBA is offered by 5500 Universities and colleges. A smaller supply of PGDM creates more demand for them.
• PGDM is mostly offered by Stand-alone institutions, which means they offer only one program, so they are focused, while MBA is offered by Universities and colleges offering 10s of other courses as well, distributing the focus among so many courses.
• A student if wishes can go ahead for Ph.D., or any other course, either with PGDM or MBA.
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Which One is Right for You? – PGDM or MBA

Highest paying jobs after PGDM?

PGDM salaries are impacted by various factors like job role, city of job, experience, the type of company, etc. Some of the highest-paying jobs for PGDM graduates are:

• Investment Banker – The salaries for investment bankers are very different with different firms, but an average salary initially may range between 8 to 10 lakhs per year, which can also reach up to 50-80 lakhs after a few years of experience.
• Project Manager– Project managers’ compensations can be around 20 lakh per annum, depending upon the city and the company of the job.
• Management Consulting – The salaries depend on a variety of factors, yet management consultants may be able to earn between 20-30 lakhs per year.
• Business Development Manager – Business Development managers are compensated well. Their average pay ranges from about 15 lakhs p.a. However, working with top companies may stretch this figure far beyond.
• Marketing Manager – Some of the best-paid employees are from the Marketing department. The average salary of marketing managers can be somewhere near 12 lakhs, with a performance bonus excluded from this figure.
• Sales Manager – Since they generate revenues, the initial salaries stand at an average salary of 8 lakhs per year.
• Business Analyst– Business analysts may be able to bag up to a salary between Rs 5 Lacs to Rs 11 Lacs initially.

PDGM is an incredibly rewarding career option for those who have the perseverance and learning enthusiasm. People with PGDM work to lead others and are at the apex of knowledge in their respective fields. They get high salary slabs, which typically range above 50 lakhs p.a. after some years of experience.

Also Read:- Best Paying MBA Specialization  

ROI: Which Program Gives Better Returns in MBA vs PGDM

List of Top Business Schools offering PGDM

1.  
2. IIMs- Indian Institutes of Management
3. XLRI- Xavier School of Management
4. SP Jain- S. P. Jain Institute of Management and Research
5. MDI- Management Development Institute
6. IMI- International Management Institute
7. IMT- Institute of Management Technology
8. Taxila Business School
9. IRMA- Institute of Rural Management Anand
10. IIFT- Indian Institute of Foreign Trade
11. Fore- Fore School of Management

Also Read: Top PGDM Colleges in India

List of Top Universities offering MBA

1. IIMs- Indian Institutes of Management
2. FMS, Delhi University- Faculty of Management Studies, Delhi University
3. BHU- Banaras Hindu University
4. Symbiosis University
5. Mumbai University

Also Read:- List of top MBA Colleges

CONCLUSION: PGDM vs MBA

Now that the important differences and similarities between PGDM and MBA have been discussed above, it is the time to analyze which one of the two stands more relevant and beneficial in today’s scenarios.

• PGDM courses follow an industry-oriented curriculum with a more practical approach, while MBA is more theoretical in approach.
• PGDM courses are given preference over MBA by various employers within India and abroad, due to the practical insight PGDM courses offer. The classrooms are rigorous, and lessons from top industry leaders and management internships are a common feature that readies students for the business environments beforehand.
• Institutes with PGDM, being self-driven, work harder than universities offering an MBA degree, to place their students across various companies.
• There are greater job opportunities for PGDM students due to additional and updated skills.
• Autonomous colleges have a cutting-edge syllabus that is updated with the times, but the universities are not allowed to change the syllabus as often. The world is more transformative than ever today, so the syllabus books and textbooks need to change often.

Must Read:- What After MBA?