MBA stands for Masters of Business Administration and PGDM stands for Post Graduate Diploma. Both are Master’s courses in Management that are very similar in nature. Students can pursue either program after completing their bachelor’s degree in any discipline with at least 50% aggregate marks. One of the major points of contention of MBA vs PGDM is that MBA degrees are only offered by recognized universities or colleges related to recognized universities. On the contrary, PGDM programs are offered by autonomous institutes. Some B schools in India offer an MBA program, while some offer a PGDM course. Students looking to pursue their Masters in Management should carefully consider the pros and cons of both the courses despite their similarities to each other.
Table of Contents
MBA vs PGDM: Salary
Individuals with an MBA or PGDM are among the top earners in the country and in the world. It is, however, worth noting that there is not much difference between the salary of someone with an MBA and someone with a PGDM. The institute from which the individual has completed his MBA/PGDM is something that makes the world of a difference. For example, an alumnus of IIM Ahmedabad is naturally going to earn more than an alumnus of any other MBA college.
To understand this better we have created a table of comparisons.
| Specialization | Average Salary of MBA holders (INR) | Average Salary of PGDM Holders (INR) |
| Marketing | 7-8 lakhs per annum | 6-7 lakhs per annum |
| Finance | 8-10 lakhs per annum | 7-10 lakhs per annum |
| Human Resource | 6-7 lakhs per annum | 6-7 lakhs per annum |
| Operations | 6-7 lakhs per annum | 6-7 lakhs per annum |
MBA vs PGDM: Which has more value?
The MBA vs PGDM comparisons have left a lot of students wondering which out of the two is better? Is an MBA the better choice or a PGDM? Let us take a look at the key aspects of MBA vs PGDM.
- All IIMs, which are the top management institutes of India offer their flagship Post Graduate Program which is equivalent to an MBA program.
- Talking about the length of MBA and PGDM courses, both last for two years.
- The MBA degrees offered by IIMs are awarded by the Human Resource Department of India, and the PGDM is awarded by the All-India Council for Technical Education.
- The curriculum for both programs are alike, and there is not much difference between the programs.
Overall, it is hard to say whether MBA or PGDM is better between the two. Companies do not give extra importance to an MBA or PGDM. In their eyes, both are equal.
MBA vs PGDM: Course Comparison
| Parameters | MBA | PGDM |
| Full-Form | Master of Business Administration | Post Graduate Diploma in Management |
| Qualification | Degree Course | Diploma Course |
| Duration | 2 years | 1-2 years |
| Eligibility | Graduation in any UG course of any stream with a minimum of 50% of marks in UG from a recognized university | Graduation in any UG course from a recognized institution |
| Admission Process | Entrance Exam | Entrance Exams as well as Direct Admission in some institutions |
| Fees | INR 2-20 LPA | INR 4-24 LPA |
| Subjects covered | Financial management, human resource management, customer relationship management, marketing research, operations management, human resource management, executive leadership abilities, and so on are all important talents. | Financial Accounting, Business Economics, Mathematics and Statistics Fundamentals, Marketing Management, Business Communication, Human Resource Management, and more courses are available. |
| Average Salary | INR 7 – 10 LPA (starting salary) | INR 12 – 15 LPA (starting salary) |
| Entrance Exams | XAT, NMAT, SNAP, ATMA, CAT | MAT, CAT, CMAT, XAT, GMAT |
Check Out: Why MBA?
MBA vs PGDM: Syllabus
In most situations, the university creates the MBA course curriculum. The core curriculum (and occasionally even elective topics) will be nearly identical at two MBA institutions affiliated with the same university. PGPM or PGDM courses, on the other hand, are established by the specific institute. The course curriculum gains some flexibility as a result of this. Every year, the curriculum is revised in response to industry demands. Universities have a tendency to lag behind and update their curricula after a few years.
“PGDM would be a better alternative for folks who are interested in the business sector or want to be an entrepreneur,”
MBA vs PGDM : Focus
Core subjects are shared by both MBA and PGDM programmes. However, according to some experts, most MBA programmes emphasise on academic and technical elements of management rather than taking a hands-on approach. PGDM courses, on the other hand, are industrially focused and emphasise skills based on market demands.
MBA vs PGDM: Differences
When comparing MBA with PGDM, students should carefully examine their career path and the job opportunities they are looking forward to. When choosing between the two, students should figure out which course has more value, which offers more employment opportunities and higher pay.
| Parameter | MBA | PGDM |
| Length | 2 years | 2 years |
| Salary | Varies form specialization | Varies form specialization |
| Degree or Diploma | Master’s Degree | Diploma |
| Curriculum | MBA and PGDM have similar curriculums | MBA and PGDM have similar curriculums |
MBA vs PGDM: Top Colleges
With the sheer number of Management schools in the country, it is hard for students to choose a college that suits them the best. Some offer MBA degrees, some PGDM and some PGP. Students should consider the quality of education, fees, and location of the college when choosing a college.
Top MBA Colleges
| Colleges | Fees |
| Department of Management Studies, IIT Madras, Chennai | INR 4,00,000 |
| Chandigarh University, Chandigarh | INR 1,80,000 |
| Industrial and Management Engineering, IIT Kanpur, Kanpur | INR 1,58,850 |
| Symbiosis Institute of Business Management, Pune | INR 9,60,000 |
| Indian Institute of Management, Ranchi | INR 7,80,000 |
| Vinod Gupta School of Management, Kharagpur | INR 5,21,900 |
| Indian Institute of Management, Ahmedabad | INR 23,00,000 |
| Indian Institute of Management, Bangalore | INR 23,00,000 |
| Indian Institute of Management, Udaipur | INR 18,50,000 |
Top PGDM Colleges
| Colleges | Fees |
| International Management Institute, New Delhi | INR 8,69,500 |
| SP Jain Institute of Management and Research, Mumbai | INR 17,50,000 |
| Great Lakes Institute of Management, Chennai | INR 11,91,000 |
| Management Development Institute, Gurgaon | INR 9,43,000 |
| XLRI – Xavier School of Management, Jamshedpur | INR 20,95,000 |
| MICA – The School Of Ideas, Ahmedabad | INR 21,00,000 |
| Indian Institute of Management, Kolkata | INR 24,00,000 |
| Birla Institute of Management Technology, Greater Noida | INR 12,00,000 |
| Lal Bahadur Shastri Institute of Management, New Delhi | INR 11,67,000 |
Which MBA specializations have the highest salary in India?
Some MBA specializations fetch a higher salary than others. Students while choosing a specialization should consider several factors like their interest in it, job opportunities, and salary expectations. If you are curious about the highest paying MBA specializations then worry not because we have listed some of them below.
- MBA in Finance
- MBA in Business Analytics
- MBA in Marketing
- MBA in Information Technology
- MBA in Entrepreneurship
Is an MBA in Finance tough?
There are many specializations that a student can choose. The concept of specialization is similar to the concept of Major that universities abroad have. There are many specializations available like Marketing, Human Resources, Finance, and Operations. Talking about the Finance Specialization, it is considered to be a bit difficult, but that is not the case. The Finance Specialization provides students with deep insights into financial management, financial markets, financial accounting, etc. Students are taught everything about finance from the fundamental level to the advanced level. The MBA in Finance program is like every other MBA program, but it requires students to make use of certain mathematical, accounting, and statistical concepts.
Is PGP equivalent to MBA?
The Post Graduate Program (PGP) is slightly different from an MBA program. PGP is not the same for PGDM as the former is a Postgraduate program while the latter is a post-graduate diploma. The PGP programs are only offered by the Indian Institutes of Management in India. The two-year full-time program is a Master’s program which leads to the grant of an MBA degree. The PGP program has both compulsory subjects and elective subjects, just like an MBA program. All IIMs like IIM Ahmedabad, Bangalore, Calcutta, and Indore offer PGP.
Is it necessary to clear CAT for MBA?
Many aspirants question whether the CAT is as important as it seems to be for pursuing an MBA or PGDM. While it is true that almost all management colleges in India accept CAT scores for admissions, they also accept other management entrance tests. Tests like CMAT, SNAP, XAT, NMAT, IIFT, MAT, ATMA, and GMAT are also accepted by Indian B schools. CMAT, MAT, and ATMA are just like CAT and can be taken to apply to different colleges. NMAT, XAT, and SNAP, on the other hand, special entrance tests of Narsee Monjee Institute of Management Studies, Xavier Labour Relations Institute, and the chain of Symbiosis institutions. The GMAT exam can be taken to be eligible for applying to universities abroad and in India. So, in summary, it is not necessary to clear the CAT for pursuing an MBA, but the exams accepted for MBA admissions depend on the B School.
How to prepare for CAT (MBA)?
CAT, which stands for Common Aptitude Test is an entrance test conducted by the Indian Institutes of Management. Earlier the CAT was a paper-based test, however, it was changed to be a computer-based test. Since 2020 the CAT has become two hours test as opposed to its previous length of three hours. The number of questions of CAT 2020 was 76 however the number of questions may change this year. The exam has three sections namely, Verbal Ability and Reading Comprehension, Data Interpretation and Logical Reasoning, and Quantitative Aptitude.
Preparing for the CAT requires consistency and commitment. The difficulty level of the test is moderate to high. Students need to work on reading and vocabulary building to perform well in the Verbal Ability and Reading Comprehension section. The questions of the Quantitative Aptitude section require students to be familiar with high school level mathematics concepts, so they should practice high-level arithmetic and geometry questions. The Data Interpretation and Logical Reasoning section require students to make use of their critical thinking skills, so solving puzzles and caselets is a must for performing well in this section.
Check Out: Best MBA Colleges in India
Which is the best IIM for MBA?
The Indian Institutes of Management are a group of management institutes established by the Government of India. Currently, there are twenty IIMs in India. The oldest IIM in India is IIM Ahmedabad which was established in 1961. Out of all the IIMs, some have been set up just a few years ago. All IIMs are elite management institutes, but some IIMs are better than others.
Let us take a look at the best IIMs in the country.
IIM Ahmedabad is obviously on top of the list. It is undoubtedly the best B school in the country. Established over six decades ago in 1961, the iconic-brick building of the IIM Ahmedabad Campus is the dream B School of many MBA aspirants. The quality of education is top-notch and the salary of all IIM Ahmedabad alumni touches the sky!
IIM Calcutta was also established in 1961 just like IIM Ahmedabad. It is located in the Joka area of Kolkata. It is a triple-accredited prestigious institution. It is one of the most coveted IIMs in the country.
Next on the list is IIM Bangalore. It was set up a little later than IIM Ahmedabad and Calcutta was actually the third to be set up. It was set up in 1973. The IIM Bangalore campus is located in the South of Bangalore. Like all IIMs, IIM Bangalore has a rich history.
FAQs
Ans: An MBA course develops theoretical concepts and focuses on developing the technical knowledge of a student. PGDM course focuses on preparing the students for practical situations. MBA is a more affordable program. PGDM programmes cost can vary between 5 and 20 lakhs
Ans: In India, as well as overseas, both MBA and PGDM courses are regarded as having equal value when it comes to career prospects. Having a PG diploma instead of a degree is certainly not considered to be a drawback.
Ans: PGDM is a Diploma and is equivalent to MBA from any Indian University. Exams are conducted by affiliated University. PGDM institutions are authorized by AICTE to conduct the exams.
Ans: 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.
Ans: As per the eligibility criteria of the MBA, candidates should have a bachelor’s degree from a recognised institute or university. Postgraduate candidates are also eligible to apply for MBA. Hence, if a candidate wants to pursue MBA after completing PGDM are eligible to do so.
Comments (0)