MBA vs PGDM: Differences, Eligibility, Admission, Jobs, Salary 2023
MBA (Master of Business Administration) and PGDM (Post Graduate Diploma in Management) are two popular postgraduate programs in the field of business and management. While they share some similarities, there are also key differences between the two. Let’s explore MBA and PGDM in more detail to understand their distinctions and help you make an informed decision based on your goals and preferences.
MBA vs PGDM: Highlights
| Aspect | MBA (Master of Business Administration) | PGDM (Post Graduate Diploma in Management) |
| Affiliation | Affiliated with universities | Offered by autonomous institutes |
| Degree/Diploma | Master’s degree | Postgraduate diploma |
| Curriculum | Fixed curriculum set by the university | More flexible curriculum, industry-oriented |
| Specializations | Available | Available |
| Industry Exposure | Included (internships, guest lectures) | Strong industry ties, corporate connections |
| Research Requirement | Dissertation may be required | Practical projects, internships |
| Pedagogy | Balanced theoretical and practical | Practical and experiential learning |
| Brand Recognition | Strong brand recognition for reputable universities | Recognition varies based on institute reputation |
| Global Recognition | Widely recognized globally | Recognition may vary based on institute |
| Eligibility Criteria | Bachelor’s degree, GMAT/GRE (in some cases), work experience preferred | Bachelor’s degree, entrance exams (e.g., CAT, XAT, GMAT) |
| Program Flexibility | Less flexible due to university regulations | More flexible to update curriculum to industry needs |
| Accreditation | Accredited by regulatory bodies | Recognized by regulatory bodies (e.g., AICTE) |
| Academic vs. Practical Focus | Balanced academic and practical approach | More practical and industry-oriented approach |
MBA vs PGDM: Eligibility
MBA (Master of Business Administration):
- Bachelor’s degree: A recognized bachelor’s degree from a university or equivalent educational institution is generally required.
- Work Experience: While work experience is not mandatory for all MBA programs, many reputable schools prefer candidates with prior professional experience. The required work experience can vary but typically ranges from 2 to 5 years.
- Entrance Exam: Some universities and business schools may require applicants to take standardized tests such as the Graduate Management Admission Test (GMAT) or the Graduate Record Examination (GRE). The score requirements may vary depending on the institution.
- Additional Requirements: Certain MBA programs may have specific requirements, such as minimum undergraduate GPA, letters of recommendation, essays, and interviews.
PGDM (Post Graduate Diploma in Management):
- Bachelor’s degree: A bachelor’s degree in any discipline from a recognized university or equivalent educational institution is generally required.
- Entrance Exam: Most PGDM programs in India require applicants to take entrance exams such as the Common Admission Test (CAT), Xavier Aptitude Test (XAT), Management Aptitude Test (MAT), or the Graduate Management Admission Test (GMAT). The score obtained in the entrance exam plays a significant role in the selection process.
- Minimum Percentile or Score: Institutes typically set minimum percentile or score requirements in the entrance exams for eligibility. These requirements can vary across institutes and can change from year to year.
- Additional Requirements: Some institutes may have additional requirements such as group discussions (GD), personal interviews (PI), written ability tests (WAT), and work experience (preferred but not mandatory).
MBA vs PGDM: Affiliation and Accreditations
MBA (Master of Business Administration):
- Affiliation: MBA programs are affiliated with universities. The degree is awarded by the university itself, which is recognized and authorized to grant degrees by the respective educational authorities.
- University Recognition: MBA programs offered by universities are typically recognized and approved by educational bodies, ensuring compliance with academic standards and quality control.
- Accreditations: In addition to university recognition, MBA programs may also seek accreditations from professional accrediting bodies such as AACSB (Association to Advance Collegiate Schools of Business) or AMBA (Association of MBAs). Accreditation from these organizations signifies that the program meets specific quality standards and benchmarks.
PGDM (Post Graduate Diploma in Management):
- Affiliation: PGDM programs are offered by autonomous institutes or business schools. These institutes are not affiliated with universities, but they are recognized by regulatory bodies such as the All India Council for Technical Education (AICTE) in India.
- Institute Recognition: The recognition of PGDM institutes may vary based on factors such as reputation, faculty qualifications, infrastructure, and adherence to prescribed standards by regulatory bodies.
- Accreditations: Many autonomous institutes offering PGDM programs also seek accreditations from professional accrediting bodies such as NBA (National Board of Accreditation) or international accrediting bodies like AMBA or AACSB. These accreditations validate the quality and credibility of the program.
MBA vs PGDM: Admission and Entrance Exam
| Aspect | MBA (Master of Business Administration) | PGDM (Post Graduate Diploma in Management) |
| Admission Process | Varied; application, interviews, essays, recommendation letters, and sometimes group discussions or case analysis exercises | Commonly involves application, entrance exam, followed by group discussions (GD), personal interviews (PI), and sometimes written ability tests (WAT) |
| Entrance Exams | GMAT (Graduate Management Admission Test), GRE (Graduate Record Examination), CAT (Common Admission Test), MAT (Management Aptitude Test), and others depending on the university or school | CAT (Common Admission Test), XAT (Xavier Aptitude Test), CMAT (Common Management Admission Test), MAT (Management Aptitude Test), GMAT (Graduate Management Admission Test), and others depending on the institute |
| Score Validity | Generally, GMAT and GRE scores are valid for 5 years, while CAT, XAT, and other entrance exam scores are valid for 1-2 years depending on the exam | Scores are typically valid for 1-2 years depending on the entrance exam |
| Weightage of Exam Scores | Varies by institution; some place high importance on exam scores, while others consider a holistic approach including academic records, work experience, and other factors | Entrance exam scores usually have significant weightage in the admission process, often followed by GD, PI, and WAT |
| Work Experience | Preferred, but not mandatory for all programs | Work experience may be preferred or required by some institutes; the duration and requirement vary |
| Eligibility Criteria | Bachelor’s degree from a recognized university, sometimes with minimum percentage requirements, and specific prerequisites set by the university or school | Bachelor’s degree from a recognized university, often with minimum percentage requirements, and meeting the specific eligibility criteria set by the institute offering the PGDM program |
MBA vs PGDM: Syllabus
MBA Syllabus
| Finance Management | Marketing Management |
| Business Statistics | Organizational Behavior |
| Project Management | Principles of Accounting |
| Human Resource Management | Business Communication and Skills |
PGDM Syllabus
| Marketing and Consumer Behavior | Introduction to Information Technology |
| Financial Reporting and Analysis | Operations Management |
| Strategic Management | Business Law & Corporate Governance |
| Finance Accounting | Management Information Systems |
MBA vs PGDM: Fees
| College | MBA Program Fees (Approximate) | PGDM Program Fees (Approximate) |
| Harvard Business School | $150,000 – $200,000 (for the entire program) | Not Applicable |
| Stanford Graduate School of Business | $150,000 – $180,000 (for the entire program) | Not Applicable |
| Indian School of Business (ISB) | INR 30,00,000 – INR 40,00,000 (for the entire program) | INR 18,00,000 – INR 25,00,000 (for the entire program) |
| Indian Institute of Management (IIM) | INR 15,00,000 – INR 25,00,000 (for the entire program) | INR 12,00,000 – INR 20,00,000 (for the entire program) |
| London Business School | £82,000 – £92,000 (for the entire program) | Not Applicable |
| INSEAD | €85,000 – €100,000 (for the entire program) | Not Applicable |
| Kellogg School of Management | $130,000 – $150,000 (for the entire program) | Not Applicable |
| Wharton School of the University of Pennsylvania | $170,000 – $200,000 (for the entire program) | Not Applicable |
| XLRI Xavier School of Management | INR 20,00,000 – INR 25,00,000 (for the entire program) | INR 20,00,000 – INR 25,00,000 (for the entire program) |
| SP Jain Institute of Management & Research | INR 15,00,000 – INR 20,00,000 (for the entire program) | INR 12,00,000 – INR 18,00,000 (for the entire program) |
MBA vs PGDM: Jobs and Salary
| Aspect | MBA (Master of Business Administration) | PGDM (Post Graduate Diploma in Management) |
| Job Opportunities | Wide range of job opportunities across industries and sectors | Wide range of job opportunities across industries and sectors |
| Industry Roles | Managerial, leadership, and executive-level positions | Managerial, leadership, and executive-level positions |
| Job Functions | Marketing, Finance, Consulting, Operations, HR, Strategy, etc. | Marketing, Finance, Consulting, Operations, HR, Strategy, etc. |
| Placement Support | Many MBA programs have robust placement support and networks | Many reputable PGDM institutes have strong ties with industry and placements |
| Salary Range | INR 6,00,000 – INR 25,00,000 per annum (varies by experience, industry, and location) | INR 6,00,000 – INR 25,00,000 per annum (varies by experience, industry, and location) |
| Salary Growth Potential | Higher salary growth potential with experience and career progression | Higher salary growth potential with experience and career progression |
| Industry Recognition | MBA degrees are widely recognized and valued in the job market | Reputable PGDM programs are recognized and valued in the job market |
| Entrepreneurial Pursuits | MBA programs often provide knowledge and skills for entrepreneurship | PGDM programs may also focus on entrepreneurial aspects depending on the institute |
| Networking Opportunities | MBA programs often offer strong alumni networks and industry connections | Reputable PGDM institutes also offer networking opportunities with alumni and industry professionals |
Top Colleges Offering MBA/PGDM
Top MBA Colleges
| Rank | College Name |
| 1 | Indian Institute of Management Ahmedabad (IIMA) |
| 2 | Indian Institute of Management Bangalore (IIMB) |
| 3 | Indian Institute of Management Calcutta (IIMC) |
| 4 | XLRI Xavier School of Management |
| 5 | Indian School of Business (ISB) |
| 6 | Faculty of Management Studies, University of Delhi (FMS) |
| 7 | Indian Institute of Management Lucknow (IIML) |
| 8 | Indian Institute of Management Kozhikode (IIMK) |
| 9 | Indian Institute of Management Indore (IIMI) |
| 10 | SP Jain Institute of Management and Research |
Top PGDM Colleges
| Rank | College Name |
| 1 | Indian Institute of Management Ahmedabad (IIMA) |
| 2 | Indian Institute of Management Bangalore (IIMB) |
| 3 | Indian Institute of Management Calcutta (IIMC) |
| 4 | XLRI Xavier School of Management |
| 5 | SP Jain Institute of Management and Research |
| 6 | Management Development Institute (MDI) Gurgaon |
| 7 | Indian School of Business (ISB) |
| 8 | International Management Institute (IMI) Delhi |
| 9 | Narsee Monjee Institute of Management Studies (NMIMS) |
| 10 | Symbiosis Institute of Business Management (SIBM) Pune |
MBA vs PGDM: FAQs
Q1: What is the main difference between an MBA and a PGDM program?
A1: The main difference lies in their affiliation and degree/diploma. MBA programs are offered by universities and award a master’s degree, while PGDM programs are offered by autonomous institutes and award a postgraduate diploma. Additionally, the curriculum flexibility, industry orientation, and accreditations can vary between MBA and PGDM programs.
Q2: Are MBA and PGDM programs recognized by employers?
A2: Both MBA and PGDM programs are recognized by employers, but it ultimately depends on the reputation and accreditation of the institution offering the program. Reputable MBA and PGDM programs that meet industry standards and provide quality education are valued by employers.
Q3: What are the eligibility criteria for MBA and PGDM programs?
A3: The eligibility criteria typically include a bachelor’s degree from a recognized university. Some MBA and PGDM programs may require specific entrance exams, work experience (preferred but not mandatory for all programs), and other prerequisites. The exact eligibility criteria can vary among institutions.
Q4: Which program is better for career opportunities, MBA or PGDM?
A4: Both MBA and PGDM programs can provide excellent career opportunities. The choice depends on factors such as the reputation of the institution, curriculum relevance, industry connections, and personal career goals. It’s advisable to research and evaluate individual programs based on these factors to make an informed decision.
Q5: Can I pursue a Ph.D. after completing an MBA or PGDM?
A5: Yes, you can pursue a Ph.D. after completing an MBA or PGDM. Having a master’s degree in business and management can provide a solid foundation for doctoral studies. However, specific requirements and admission processes for Ph.D. programs vary among universities and institutes.
Q6: Can I switch my specialization during an MBA or PGDM program?
A6: Some MBA and PGDM programs offer flexibility in choosing specializations or electives, allowing students to switch their focus within the program. However, the availability of specialization switching depends on the institution and program structure. It’s recommended to check with the respective institution for their policies on specialization changes.
Q7: What is the average salary for MBA and PGDM graduates?
A7: The average salary for MBA and PGDM graduates varies based on factors such as the industry, job role, company, location, experience, and the reputation of the institution. Generally, both MBA and PGDM graduates can expect competitive salary packages that increase with experience and career progression.