“PGDM v/s MBA: Myth v/s Reality”

In recent times we are witnessing an avalanche of degrees, diplomas, certifications, etc all being advertised and marketed professionally. This leads to utter confusion in the minds of students and parents. For them these terminology/jargons/technical nomenclatures are difficult to understand and comprehend. As a faculty of a première B-School I have observed that due to lack of sufficient knowledge or expert opinion available students often tend to make following mistakes:

• Rely on the advice of some relative who has no knowledge of management area
• Rely on advice of fellow students who themselves are confused
• Rely on third parties and consultants to decide their career
• Gets miss-guided by the flashy advertisements and websites of institutes
• Biggest of all mistake, blindly take admission where rest of friends are going

While interacting with students/parents who come to take admission at Jaipuria Institute of Management Studies, I often meet this confused set of people hence I decided to clear this confusion by the best means of information distribution: Internet so that students and parents can google and get right information.

Myth 1: PGDM is a Diploma while MBA is a Degree

Relaity1: PGDM stand for Post Graduate Diploma in Management, the misperception starts when you see the term Diploma. Many students are of the view that it is a Diploma course and not a Degree; but they are not correct. The main reason why postgraduate courses are named as PGDM is because when an Institute is an autonomous body (meaning it is not affiliated to any University) and conducts management courses then such Institutes cannot offer MBA degree. Even IIMs, XLRI's doesn't offer MBA degrees they only give PGP Diploma or PGDM as they are autonomous and independent bodies. And all top B-Schools of India offer PGDM. While opting for PGDM courses, students must exercise caution and check the accreditation status of the college. Colleges offering PGDM courses need to be accredited by AICTE. In case of MBA, the colleges are affiliated to a University and Universities are controlled by University Grants Commission (UGC) and the colleges may also get accredited by AICTE. According to a recent Supreme Court verdict, UGC recognized MBA programmes need not have AICTE approval.

MBA is a two year management degree expands to Master of Business Administration, only Universities can grant MBA degrees. It could be a recognized foreign university or an Indian University. University affiliated colleges cannot offer PGDM they only give MBA as per the university nomenclature system.

Diploma is a certification by a college or recognised teaching institute for satisfactorily completing a specified course in the time duration lesser than full time degree course. This means that if MBA is full time two years diploma will be 1year or 1.5year. But PGDM is also two years full time management program hence at par with MBA.

Myth 2: PGDM  is not equivalent to MBA

Relaity2: PGDM is totally equivalent to MBA since:

• Both are Two years course
• Both are Full time course
• Both are post-graduation programs/masters program
• Both cover all basis subjects of Management
• Both have regular internal and external assessment
• Both have compulsory internship

Myth3: PGDM  students cannot get government jobs, but MBA student can

Relaity3: PGDM students also get jobs in reputed Nationalised Banks and PSU’s. At the end of the day PGDM is also a Post-graduation hence student can appear for any competitive exams and job openings meant for post graduates.

Myth4: PGDM  students can not pursue higher education i.e. Phd, only MBA can.

Relaity4: As mentioned earlier PGDM is also two years full time post-graduation and in order to do Phd the eligibility is post-graduation hence both PGDM and MBA can pursue FPM/Phd later on.

Myth5: MBA is more recognised in corporate world PGDM  is not

Relaity5: The corporate world requires young, qualified, skilled professional who are expert in their specialization areas. Even a graduate can get a job in the corporate world. Only the level of entry will differ than a post-graduate. In fact, PGDM gets advantage over MBA since PGDM imparts more employability skills to make student corporate ready and better professional than regular MBA.

For. Example at Jaipuria Institute of Management Studies, we work closely with our PGDM student in context to improving their:

• Communication Skills and overall personality development
• Report making and Presentation Skills
• Domain Knowledge
• Research and Analytical Skills
• Corporate interface by internships and trainings

Myth6: MBA is affordable PGDM  is costly

Relaity6: MBA is offered by state and government universities hence they follow the government approved fees structure. Hence they capitalise by increasing the number of seats as many as they want. So overall earning is same as PGDM institute charging for permitted seats based on AICTE approval. PGDM generally charges more than MBA due to the value addition done on students apart from regular teaching and examinations conducted. Some PGDM students generally offer laptops, study material, educational tours, guest lectures from CEO’s and foreign faculty etc. all this is cost intensive process and requires investment. MBA institutes don’t offer all this hence they charge less. That is why it is often said that PGDM students are given better facilities and environment to grow as professional as compared to a MBA student. There are many private universities which also offer MBA at very high cost, higher than PGDM institute. Hence it’s a myth that MBA is affordable. Students must look value for money and remember that education is all about investment of Time, Money, Efforts and the result shows in terms of good placements.

Myth7: MBA is more structured due to University supervision PGDM  is not

Relaity7: MBA structured because it has to follow the structure and ordinance of University. This means total loss of flexibility in terms of subjects taught and teaching methods adopted. Under a university there are around 50-60 constituent/affiliated colleges which provide MBA of that university. Hence by law all these colleges have to stick to same syllabus, unless all the colleges jointly request university to upgrade the syllabus as per corporate requirement.

Whereas PGDM institutes affiliated with AICTE have the autonomy and independence to re-structure the course curriculum taught as per the industry requirements. For example; at Jaipuria Institute of Management Studies, Indirapuram Ghaziabad we call a joint meeting of subject expert faculties with the HR-heads of various companies and discuss what industry requires. We bridge the gap between corporate and academics by teaching new subjects which are in demand by industry and provide better jobs.

The author of this article is Dean – Learning and Development at Jaipuria Institute of Management Studies, Indirapuram Ghaziabad. She is also Associate Professor in marketing department and is constantly engaged in various student placement services.