PGDM or MBA

We want to stress that while deciding between MBA or PGDM, what is most important for you as a student is to understand your personal goals. If you are interested in a corporate job and career, you should choose a B-school/Colleges based on their Ranking, Curriculum and Placements, and NOT by the degree or diploma they offer. Corporates don’t treat MBAs or PGDMs differently. They only want candidates that can perform well on the job. So,  curriculum and faculty is most important.

PGDM B-schools are at par with IIMs and MBA colleges as according to all good B-school Rankings 75 out of 100 Top B-schools in India are PGDM colleges. However, if you are looking for just another academic qualification, that too at a low cost, then an MBA from a Government university will work well.

Many top PGDM B-schools have received MBA Equivalence from Government body AIU, and their PGDM is treated at par with MBA when it comes for higher studies like M.Phil or Ph.D.

With effect from the academic session 2017-18, after passing of IIM Act 2017 in January 2017, many of the 20 IIMs have started to award MBA Degree instead of PGDM. A few IIMs have not changed their program name but have started to confer MBA degree instead of post graduate diploma while remaining other IIMs still prefer to award PGDM. Here is the list of 20 IIMs with their PGP/MBA programs leading to award of MBA/PGDM after completion of the course.

While top and older IIMs offer different types of MBA/PGP courses in different streams apart from flagship programs, including doctoral courses in Management, new IIMs offer flagship 2 years PGP programmes called PGP or MBA after passing of IIM Bill 2017. 

Besides, apart from MBA course specializations offered in the second year, some of the IIMs also offer specialized MBA courses in different streams like MBA in Food & Agriculture, MBA in Agriculture Business Management, MBA in Human Resource Management, MBA in Sustainability Management among others

Here is how you can decide between the two:

• Decide your MBA Goals: If your goal is to join the corporate world, then PGDM or MBA makes no difference. What matters is your learning at a B-school. So faculty, curriculum, industry-integration of a B-school is most important. However, if your goal is to get another academic qualification at low cost, MBA fits the requirement well.
• Decide your MBA Budget: This is an important consideration since the MBA fee ranges from Rs.25000/- at FMS Delhi to Rs. 21 lakhs at IIM Ahmedabad. No doubt the financial assistance in the form of study loan is available to pursue the MBA programme from all the banks and financial institutions in India, you need to weigh all the pros and cons based on fee structure and your financial ability.

Since it is not possible for everyone to get 99+ in CAT and be a lucky one among 200 candidates to get admission in MBA programme at FMS, Delhi, there are good MBA colleges with low fee structure in the range of 2 to 10 lakhs in Delhi, Mumbai, Pune, Bangalore, Chennai, Ahmedabad where you can pursue your MBA/PGDM. However, before moving ahead, you should also see the Return on Investment that you would get after completing your MBA.

• Check your Academic Credentials and MBA Entrance Exam Scores: PGDM B-schools can choose from one or many of 6 approved exams: CAT, XAT, CMAT, MAT, GMAT, ATMA. These exams are held in December, January, February every year. State-level MBA Exams like PGCET and TANCET happen later in the year in May, June. If you score well in CAT, XAT etc, you have a good chance to get into good PGDM B-schools. So plan accordingly.
• Make the right selection:  Doing MBA can be your need for future growth, your quest to learn leadership skills or to simply enhance your business and entrepreneurship skills. However, you need to make the right choice and choose the best fit MBA programme.

If you visit the different B-schools’ websites, you will find certain differentiating points for each B-school and its management course. It hardly matters whether you choose one of the top MBA or PGDM colleges, but it matters whether it caters to your needs.

Following are the key parameters to choose the right MBA college:

1. Ranking of the B-school
2. Legacy of the B-school
3. Fee of the B-school
4. Student-faculty ratio
5. Placement record
6. Whether the sought after MBA programme is offered by the B-school
7. Location of the B-school

1. Industry oriented course structure
The course structure of PGDM is such that it is more industry-oriented as compared to MBA. Since autonomous institutes offer this course, therefore the curriculum is kept in accordance to the latest developments. Also, PGDM has a more practical approach, whereas, MBA just gives you bookish knowledge.

2. Specialization in Any Field
PGDM lets you specialize in your areas of interest. For example, if you choose to go for a specialization in Human Resource Management, then you can choose minor subjects like Marketing/ Finance/IT/Project management which gives you an edge over other candidates.

3. Preference for Higher Studies
Many reputed Business schools in India, as well as Abroad, give preference to PGDM students over MBA students. This is due to the practical insight which PGDM offers and MBA which is more theoretical lacks. Hence it gives you an advantage over other students provided it is done from a reputed institute.

4. Real-time Business World Experience
In PGDM, students are given immense exposure to the real-time business world through rigorous classroom studies, meetings with top business leaders, management internships and various other similar ways. These techniques help the students to get comfortable with the business environment and makes them job ready.

5. Better Placement Offers
Institutes with PGDM courses provide attractive placement offers since they are autonomous in nature. Whereas MBA doesn’t guarantee you a job and you have to struggle on your own for placement.

6. Experienced Faculty
In institutes offering PGDM, the teachers are more qualified as they are offered lucrative salary packages whereas in MBA colleges due to the outdated rules of universities, college makes extra efforts to bring the latest corporate learnings.

7. Job Oriented Programme
PGDM is more job oriented than MBA which helps one in getting a suitable job right after completing the course. The job opportunities are widened with a PGDM due to the added skills you learn during the course.

8. Learning Opportunities
PGDM gives more learning opportunities, Seminars and workshops are arranged. Top industry managers are called as guests for giving speeches and to motivate students. Industries also prefer autonomous institutions for campus recruitments.

9. Better Financial Aid
It is easier to get education loans if you study in an AICTE approved business school Like Best B-School in UP they are widely recognised. In private or national banks, students can easily avail loans and complete their studies without any burden.

10. Job-Related Skills
Just getting a degree won’t get you a job. What you require are the right skills. PGDM teaches you those skills. It makes your job ready for the leadership and managerial skills you learn. These skills help you in surviving the competitive corporate world with ease.

It appears B-schools have created more confusion for students claiming tall achievements. Good MBA programmes offered by top Government or Private Universities are compatible to the best management courses offered by any B-school in India. For example MBA from FMS Delhi, IIFT, JBIMS, XIMB, NMIMS, SIBM are the most sought after management courses that have commercial orientation and the PGDM offered by other top B-schools and IIMs goes hand in hand with them.

Although both MBA and PGDM are similar in outcomes in terms of employment prospective, there are still some differences as shared below:

1. MBA a Degree programme
   At the end of an MBA programme, students are conferred with MBA degree instead of a Post Graduate Diploma. You do not need any AIU equivalence certificate to accompany your MBA degree while to prove that you have done MBA an equivalence certificate is needed with PGDM.
2. MBA has Global acceptability for employment
   At the international level, MBA degree is well recognized for global employment opportunities and is acceptable by all the recruiters. Top B-schools in the world offer MBA degree and not PGDM diploma. 
3. MBA degree - requirement for higher studies abroad
   If you wish to pursue higher studies like doctoral programme abroad, it is the MBA degree that makes impact and is acceptable. Foreign universities need your MBA degree instead of diploma to offer you admission in Ph.D/Doctoral programme.
4. MBA backed by University
   MBA degrees are awarded by Universities. There is uniformity in education, learning among all the University affiliated colleges. Besides, students do not have to exercise so much caution while opting for MBA course offered by the University or University colleges as they carry all the university related credentials as again the private PGDM colleges who sometimes may not follow the AICTE norms meticulously. 

   This happens at the time of fee refund as candidates find it difficult to get their paid PGDM fee back. Since the MBA colleges are affiliated to an University and Universities are controlled by University Grants Commission (UGC), the colleges have to abide by the university norms. In addition to UGC approval, these university affiliated colleges can also get AICTE approval for their different courses.

5. MBA Fee structure is low
   University or university affiliated MBA colleges offer MBA at a lower fee than PGDM programmes. This is true as FMS – University of Delhi offers MBA at Rs.25,000/-; JBIMS-University of Mumbai offers MBA at Rs.6 lakhs (Recently revised upwards); PUMBA-Pune University offers MBA at Rs.1.50 lakhs; Bangalore University MBA fee is Rs.54000/-.

   Not only this, the same college that offers University MBA and AICTE approved PGDM has a low fee structure for MBA and higher fee structure for PGDM.  

   Since, mostly government approved universities offer MBA degrees, the MBA fee structure is regulated by them even for the private MBA colleges affiliated to them. These universities offer MBA at a subsidised fee as they receive financial aid and grants from the government but since private universities have to manage on their own they have high fee structure for MBA programme like NMIMS, Symbiosis, Xavier University Bhubaneswar among others.

6. Legacy of MBA
   Except the PGP programmes offered by IIMs and few other top B-schools, MBA programmes are much older. For example, FMS - Delhi University is 60 years old; JBIMS Mumbai is also more than 50 years old. 
   These MBA colleges have created a huge alumni base as compared to newer PGDM colleges. This helps in high placements also. The Parliament has recently passed the IIM Bill which seeks to empower all the IIMs to confer MBA degree instead of PGDM.

If you wish to pursue management course, you need to go by your requirements. In fact, the MBA from lower rung colleges affiliated to Government University may give you a degree but may not give you that much of skills that you can get from a highly ranked PGDM college. On the other hand, MBA from a top Government University college like FMS, JBIMS, could take you to your career heights as against a PGDM from a comparatively low ranked PGDM college.

The decision therefore has to be taken in right perspective and a balance has to be made based on all the parameters discussed above to choose the right programme and right B-school.