When it comes to choosing a post graduate management programme, students have two options: MBA and PGDM. Although both are focused on developing managerial skills, they both have certain considerable differences.
This article gives a glimpse into these differences in order to help you make a choice between MBA & PGDM.
What is PGDM?
PGDM is a diploma program offered by several autonomous institutions and is approved by the All India Council for Technical Education. Institutes providing PGDM have a curriculum which is flexible and include updated courses according to the industry trends. It focuses on practical learning, industry exposure & skill development. The exams which allow students to take up PGDM as a course are: CAT, XAT, NMAT, MAT etc.
What is an MBA?
MBA is a degree program which is offered by the universities which are accredited by the University Grant Commission (UGC). It is a university approved degree following a fixed curriculum. The program is theory based and has academic depth. The exams which allow students to take up MBA as a course are: CAT, CMAT, MAT, XAT etc.and some university specific tests.
What are the Key Differences Between PGDM and MBA?
The key differences between the two courses are as follows:
Difference | MBA | PGDM |
Diploma vs. Degree | Diploma by autonomous institutions. | Degree awarded by UGC accredited universities. |
Affiliation & Accreditation | Approved by AICTE | Accredited by UGC |
Curriculum Focus | Industry oriented & updated regularly. | Academically focused & more structured. |
Teaching Methodology | Practical & hands on learning | Theoretical focus with research focus. |
Who is it for? | Ideal for industry focused learners. | Suitable for those seeking a recognised academic qualification. |
Importance of Choosing the Right Management Programme for Career Growth
Choosing the right management programme is really important for an individual’s career growth. The following are the reasons for choosing either of the two programmes:
MBA
The following are the reasons for choosing MBA as the management programme:
- It is ideal to choose an MBA if the student wants to go for a recognized university degree.
- It is also ideal if the student is looking for an academically strong and structured programme.
- It is the correct choice if they are planning to pursue a PhD or a government job in the future.
PGDM
The following are the reasons for choosing PGDM as the management programme:
- It is ideal if the student is seeking industry ready skills and updated curriculum.
- It is also ideal if case studies, live projects and internships are the preferred means of learning.
- It is the correct choice if the students are planning to pursue roles in private companies and MNCs
What are the Career Prospects & Opportunities for MBA and PGDM Professionals?
Both PGDM and MBA graduates enjoy a wide variety of career options. Nevertheless, both the programmes open the career opportunities in different ways. The following are the most common industries where MBA and PGDM graduates thrive:
Key Highlights
- The PGDM graduates generally find themselves in client facing roles such as consulting and marketing where problem solving and industry knowledge are key elements.
- The MBA graduates are way more well suited for strategic roles, where a deep understanding of business concepts such as finance and corporate strategy are the key elements.
Industry | PGDM | MBA |
Consulting | Strategy and operations consulting | Strategy consultant and business analyst |
Finance | Investment banking, financial analyst | Corporate finance, financial planner |
Marketing | Brand Management and Digital Marketing | Market Research Analyst |
Operations | Supply Chain Management, operations manager | Project manager, quality control analyst |
Human Resources | HR business partner, talent acquisition specialist | HR manager, training and development specialist |
PGDM Vs MBA: What is the Salary Difference?
While the salary is affected by several factors. A general comparison of the salary differences between PGDM and MBA has been given below:
Entry Level Roles:
Both MBA and PGDM graduates can expect competitive entry level salaries. A PGDM’s industry aligned skills can sometimes lead to higher starting salaries in specific areas like digital marketing and business analytics.
Mid Level Roles:
At mid level MBA graduates may have a slight advantage in strategic roles requiring a degree such as finance and operations management. PGDM graduates instead excel in roles that require updated knowledge about the industry particularly in tech driven fields.
Senior Level Roles:
Both MBA and PGDM graduates who progress to senior roles like a director or VP level positions can expect 6 figure salaries especially if they have an expertise in specific fields which
are in high demand.
Choosing between the two programmes between MBA and PGDM is a crucial decision that the aspiring management professionals need to make. PGDM is ideal for those who prefer the practical, industry aligned skills with a focus on real world applications. While at the same time a professional should choose MBA if they are planning to pursue a career in a solid academic field, it is beneficial for careers in strategy, finance, and roles requiring recognised degrees. It is necessary to understand these differences so as to make an informed decision.
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