Management: Different strokes

Dr. Amol Gawande

MBA and PGDM are two postgraduate programmes that are often used interchangeably. Whenever fresh graduates or working professionals want to pursue management course, they tend to consider these programmes but often get confused with the choice. Are MBA and PGDM same? If no, what’s the difference? Which is better? Let’s address the MBA vs PGDM dilemma here so that you can make an informed decision.

Understanding the terminology

MBA stands for Master of Business Administration while PGDM stands for Post Graduate Diploma in Management. The confusion starts because the word ‘diploma’ is attached to PGDM. So, students think that PGDM is a diploma programme. However, this is not the case. MBA is a degree course offered by institutes that are affiliated to universities. The exams are held by universities.

PGD is a diploma course offered by autonomous institutes not affiliated to any university. These autonomous institutes are duly recognised by the All India Council for Technical Education (AICTE), a statutory body that falls under the purview of Ministry of Human Resource Development. Even the most reputed and top ranking management institutes in India offer PGDM and not an MBA. The exams are organized by institutes as per their own schedule.  You should also note that the Association of Indian Universities (AIU) considers the accreditation of MBA course equivalent to that of PGDM.

Curriculum

The curriculum of MBA is strictly governed by the universities. This means that the institute offering MBA has to adhere to the guidelines laid down by the universities strictly. The focus is purely on theoretical and technical concepts and is highly-oriented towards exams. The curriculum is usually updated only once in 3-5 years. Since institutes offering PGDM are independent of universities, they have the liberty to design their own curriculum. They ensure that the curriculum is updated in real-time in accordance with the industry needs and real-world business situations. Apart from the core traditional subjects such as finance, marketing, human resources and operations, good PGDM courses also include new-age subjects such as design thinking, innovation, entrepreneurship, data science and analytics among many others. The curriculum also lays strong emphasis on the development of soft skills such as communication, leadership, team-building, problem-solving, critical thinking, etc.  PGDM institutes also ensure that the pedagogy includes case studies, projects, presentations, simulations and practical training other than theory.

Placements

Most MBA institutes do not take active participation in placements. Hence, there is always a possibility that students may have to explore other avenues for landing jobs on their own. Since PGDM institutes have strong industry tie-ups, they take their placement activities seriously and make dedicated efforts to help their students get jobs.

Fee and amenities

While MBA courses have lower fees as compared to PGDM courses, the later provide far better amenities in terms of campus infrastructure and resources. So, even if any PGDM institute charges a little higher, it is worth the facilities that students get.

What do the employers think?

MBA and PGDM are regarded as equivalent to each other in India and abroad. Also, there are more PGDM institutes than MBA in India. The industry is aware of this fact and hence, do not differentiate much between MBA and PGDM. The employers give more weightage to the reputation of the institute and student's capability to perform the job. 

Impact on higher education chances abroad

Students who want to pursue higher studies such as PhD or double post graduation abroad after MBA or PGDM in India can easily do so with either of the degrees. While the eligibility criteria differ from one foreign institute to another, a majority of them accept both MBA and PGDM as equivalents. 

Verdict 

Per se, PGDM definitely has advantages over MBA in terms of industry-relevant curriculum, placements and amenities. Moreover, a large percentage of institutes in India offer PGDM instead of MBA. Unless there is a particular reason for opting for an MBA, it is advisable to enrol in a PGDM institute.

— The writer is Assistant Director, Dr. D. Y. Patil B-School