An MBA is more widely recognized than a PGDM as a qualification in business administration and management studies by many employers or institutions of higher learning. However, this recognition also depends on the reputation and ranking of the institution itself. Some higher-ranked institutions that offer a PGDM get more recognition than a lower-ranked university that offers an MBA. PhD programs recognize an MBA for admission, while they will not accept a PGDM.
The MBA program for full-time students runs for two years, although this varies in different countries and depends on the length of the internship period. The duration of a PGDM is similar to an MBA in most cases. However, as self-governing institutions offer the PGDM, they adjust the duration according to the work experience of the student. MBA programs are often more strict, and can take more than two years for part-time, long-distance and executive students.
The aim of an MBA program curriculum is on theoretical management aspects and examinations rather than practical knowledge. The aim of a PGDM curriculum is on meeting industry demands. MBA programs are more rigid and do not rapidly change to accommodate new demands and the latest research. PGDM programs frequently change to offer relevant management skills and knowledge.
MBA programs usually give students better career prospects due to their wider recognition. PGDM programs may allow students to find employment, but have limitations because graduates cannot further their studies with a PhD. Some companies prefer to invest in employees to build human capital through training and may prefer a candidate with MBA qualifications who can go on to undertake a PhD.