A natural question that arises when graduates have to tackle a postgraduate in business is whether they should go for MBA or PGDM, which of the two, MBA vs PGDM salary is higher?. And it is a tricky question to answer. Or rather, the answer is not objective. The question MBA vs. PGDM is subjective in nature, which means there isn’t a single answer. For example, if the college fee is in question, the answer might be PGDM, or when an individual’s end goal is concerned, the answer might be MBA. To answer this question, we will need to look at the problem from a different perspective or lens.
However, there are some objective differences between an MBA and PGDM.
- MBA is a degree, while PGDM is a diploma course. MBA comes under the University grant’s commission(UGC), while PGDM is accredited under the All India Council for technical education (AICTE)
- MBA focuses on theoretical aspects more than PGDM. PGDM prefers to provide students with more real-life business experience. For pursuing higher studies abroad, MBA is a better option.
Let us look at the problem from some other different perspectives as well:
● End Goal
What does the student want out of a postgraduate degree in business is vital in deciding which degree should be chosen. And for us to answer this question, we need to know what these degrees offer.
MBA is a professional degree that aims to create individuals who can work for the industries. MBA has a lot of diverse fields from which these individuals can choose from. Some of these fields are operations, finance, human resources, accounting, international business, organizational design, strategy, and risk management. MBA prepares the candidates for the harsh corporate world. The lucrative salary allows the aspirants to overcome the long work hours of this field. For example, the operation manager salary in India is quite high, that is why many aspirants opt for an MBA in Operations Management. The MBA course structure is more suited for people looking to get into the corporate sector and work their way up the industry. PGDM is also a professional degree created with the philosophy that leaders are nurtured, not made. The PGDM trains individuals who can run the industry. PGDM also has a large number of specializations. But the individuals are given personalized care and work together in an application-oriented way. The course structure is more suited for people who want to become an entrepreneur.
Salary is an important parameter when contemplating MBA or PGDM. As discussed in the earlier point, MBA graduates get a lucrative salary. PGDM vs MBA salary is lower. MBA is a postgraduate degree that focuses on both technical and theoretical aspects of business management. Corporates prefer MBA graduates, and thus, salaries of MBA graduates are higher.PGDM graduates are more suited for entrepreneurship. Although a high-risk maneuver, entrepreneurship can pay for itself in the long run.
The MBA program is more rigid and strenuous. This trains individuals to work in high-stress situations and have high adaptability. However, the PGDM program is flexible enough for students to have more creative freedom. The students are better to experiment with new ideas in business. For reference, the operations manager salary in India
for PGDM/MBA is about 7.65 LPA. After rising in the career path, pay increases to about 12lpa. Rising in the ranks is easier for MBA graduates as they are already attenuated to the corporate environment, PGDM graduates have a hard time adapting to the corporate setting.
The cost of the studies or training is a critical factor, often overlooked by people when deciding which degree to go far. On average, MBA courses have lower fees than PGDM courses. This stems from number one, the basic philosophy of both courses/degrees, and number two universities offering the degree.
MBA is offered mainly by universities accredited by the government. They receive grants and funds from the university grants commission(UGC). PGDM students have to bear the entire cost of education alone. Naturally, PGDM courses have higher costs.
PGDM only takes about a maximum of 350 students for the course, while an MBA program enrolls more than 500 students. The PGDM focuses on individual students, which ultimately increases college fees.
We can clearly see the answer to the question is tricky. Deciding MBA vs. PGDM has many subjective components depending upon the lens an individual chooses. We have analyzed the problem through the main perspectives in Indian society. Looking at the discussions above, individuals should answer the question quickly based on their needs.