This question is often repeated by MBA aspirants and their parents. These have been FAQs for ages.
Generally, the question comes from freshers who opt for management studies just after their graduation. Management students who come with some work experience are generally better informed and also the industry exposure during their jobs helps them have a better understanding on this topic of MBA vs PGDM. And by the time the working class decide for a management degree this doubt which they may once have, is cleared.
- Which B School to choose – one which offers PGDM or the one which offers a MBA degree?
- Is MBA better than PGDM / PGPM / PGP / MMS etc. ?
- Is the long term value same for both ?
- Do recruiters give any preference to MBA or PGDM ?
- Is PGDM more tough than MBA ? Or Vice versa.
These lead to confusion in many students’ minds. So to answer all these queries and have clarity on this point once again, let us start with all the FAQs listed above.
Which B School to choose – one which offers PGDM or the one which offers a MBA degree?
Till 2017 before the new Education Bill was passed by the current government, management programmes offered by universities were termed as “MBA” while by the management institutes which did not have an university status used to be termed as PGDM or PGP or similar.
Also for the record, the IIMs (PGP – management courses) were introduced initially to focus specifically on management studies which meet industry needs and prepare students as per job requirements.
Cut off marks at PGDM or PGP or MMS or PGPM institutes used to be higher and admissions to a PGDM course was more difficult compared to an MBA.
Few exceptions like MBA from FMS, Delhi University or MMS from JBIMS Mumbai were considered in the same category due to the quality and value they offered.
Hence, PGDM/ PGP/ PGPM was more preferred by students as it meant better jobs, compared to MBA offered by universities. The average salary was higher than those offered MBAs.
The difference was in the quality of the management programme offered and NOT on MBA or PGDM that is offered.
Post Graduate Diploma in Management [PGDM] is a two-year diploma course offered by the autonomous institutes.
Recruiters are least bothered if it’s MBA & PGDM. For them it is the quality that matters. Quality of the institute and quality of the students passing out. There is no discretion for recruiting from a PGDM or MBA.
Forget MBA or PGDM, after a few years in a job it will not even matter which institute you have passed out from. What will only matter is how well you perform in your job. And how consistent is your performance while you are in the job. Unless you perform and keep doing so, the brand of the institute can not take you long in the career path.
The syllabus and pedagogy in both PGDM and MBA are supposed to be the same, as they are all under the same governing bodies – AICTE or UGC, which in turn is under MHRD. Many B Schools in India offer both PGDM & MBA where even the faculty members remain the same. Eg. TSM Madurai, PSG etc.
The basic eligibility criteria for MBA, PGP and PGDM has always been the same:
- Any management entrance exams : like CAT/XAT/CMAT/MAT/GMAT/ CET and others
In 2017 a education bill was passed by the Government which said management programmes offered by IIMs will now on be known as MBA instead of PGDM, though they do not fall under any University.
However, programmes offered by IIM Lucknow, IIM Kozhikode, IIM Indore, IIM Shillong, IIM Raipur and IIM Rohtak are still termed as PGP and not MBA while at IIM Trichy it is termed as PGPM.
According to the placement data, even today the average salary received by PGDM students is higher than the average salary received by MBAs.
To clarify this doubt once and for all, a letter has been issued by Association of Indian Universities (AlU) recently which stated that AIU shall consider the PGDM applications received from SAQS accredited institutions for equivalence with MBA degree of Indian Universities on fulfillment of other conditions. The letter also referred that the PGDM program offered by any Standalone Management institution will be considered equivalent to the MBA degree of Indian Universities.
The letter read “The Equivalence committee after due deliberations recommended that the proposal of SAQS of AMDISA as an accreditation body may be accepted at par with NBA accreditation for granting equivalence of PGDM program of standalone management institutions with MBA degree of Indian Universities subject to the condition that equivalence shall be granted to only those PGDM programs which were running in the institution at the time of according accreditation and are part of the SAQS accreditation assessment report. The same shall be true in case of other accreditation agencies like AACSB, EQUIS and AMBA.” To read the original letter CLICK
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