Making the right choice: PGDM vs. MBA

Log on to any job portal, scour any classifieds section or get in touch with any HR agency, the pre-requisite for a job with a decent pay package is a MBA degree from a qualified, well-reputed University. In India, the one name which takes the cake for being the most reputed Management Institute is Indian Institute Management or IIM. But IIM does not have a degree in MBA listed amidst the courses it has to offer.

Why, if an IIM does not offer an MBA course, does an IIM degree holder get preference over a MBA holder from a less reputed institute?  Did the job specification not state in clear words that the organization was seeking MBA professionals?

What should a student do in such a situation? Should the hiring of an IIM degree holder be rejected as a one-off incident? Or should the preference really be given to a PGDM course from IIM?

The truth is that the corporate world is on the lookout for Industry-ready PGDM degree holders. An MBA originated in the USA as a management course offered by Universities to train their students in the skill sets required to survive in a corporate atmosphere. Indian Universities adopted this degree and included it amongst the courses on offer. However, with the passage of time, the bureaucratic processes involved in updating a University curriculum or changing it to adapt to an ever changing corporate environment, restricted the pace and efficiency of a University offered MBA degree.

India’s solution to this problem was the emergence of AICTE approved management institutes which offered two year Post Graduate Diplomas in Management studies.  As long as the institute is approved by AICTE the PGDM offered by it is equivalent to an MBA offered by a University. In fact, a PGDM is actually more industry-relevant than an MBA. As PGDMs are offered by autonomous institutes, they are not bound by the processes and rules of the University. Curriculums for PGDMs undergo consistent changes to keep up with the demands of the corporate sector.

While the corporate sector continued to seek PGDM degree holders, the term ‘MBA’ stuck on. When job descriptions demand MBA degrees, what they really seek are industry-ready, aspiring managers.

To clearly understand which is better PGDM or MBA, it helps to take a quick look at the differences between the two:

·         The biggest and most prominent difference is that only Universities can offer an MBA course. All other management institutes, no matter how reputed, offer PGDM courses

·         MBA by structure has a more exam-oriented approach and focuses more on the theoretical aspects of Management Studies. A PGDM course on the other hand is more industry-focuses, and adapts more of a hands-on approach. This is also the reason why certain corporate prefer to hire PGDM degree holders over MBAs

·         Any changes in an MBA curriculum are slow. A PGDM course on the other hand gets upgraded regularly to keep up with the management challenges of an ever expanding corporate scenario

·         The only advantage of an MBA is that it is globally recognized. PGDM holders need to produce AIU certificates validating the management institute which has conferred the degree

If the final goal is to dive into the thick of the corporate world with necessary skill sets and confidence, PGDM is the solution. An MBA degree, while equivalent in its evaluation to a PGDM, does not focus as much as PGDM course on developing industry ready skill sets in the students.