Master of Business Administration (MBA)his a globally-recognized degree specially designed to develop the skills required for making careers in the field of business and management. Initially, the MBA is limited to the Business world only but now its importance and value have multiplied several times and it is required in almost every field. This program is a gateway to an overabundance of job opportunities in the corporate world. MBA is one of the most popular post-graduate programs in the world as students from any streams like Science, Commerce, and Humanities can pursue it. An MBA or Post-Graduate Diploma in Management (PGDM) is generally a two-year course that is divided into four to six semesters. It is not always necessary that there will be four to six semesters in MBA or PGDM. There are some private institutes that also offer one-year PGDM programs. Most are the MBA programs are offered in English. The MBA program was first introduced at universities in the United States in the 20th century.
Being a most popular course, MBA can be pursued in various modes like regular, online and distance education. Today there are more than 2,500 MBA programs offered globally. The regular MBA which is also known as a full-time MBA is the most popular among all the types of MBA. This program is a combo of theory classes, practical projects, internships, and campus placement. Anyone both Fresh graduates, as well as candidates with work experience, can opt for a full-time MBA. On the other hand, candidates with work experience can do Executive MBA as it is designed to enhance their managerial skills of the candidate to stay relevant in the job market.
Two-year MBA programs are still common, but one-year programs have become increasingly popular in the world. There are many management institutes that offer Post-Graduate Diploma (PGD) or Post-Graduate Programme commonly known as PGP in Management instead of an MBA degree. Professionals, who are not willing or unable to take a year or two off to do a full-time program, can pursue an MBA in Part-time mode. Nowadays, online programs are also widely available.
Candidates get easily confused about whether to opt MBA or PGDM. There is not much difference between the two, but the difference exists. The following table will clear your doubts regarding the difference between MBA and PGDM.
|Basis of Difference||PGDM||MBA|
|Recognition or Affiliation||PGDM colleges are independent and take own decisions. These are autonomous bodies so they are not affiliated to any university||MBA colleges are not independent as PGDM Colleges. They are recognized by the universities and they have to strictly follow the rules of the universities.|
|Curriculum||PGDM is an industry-oriented course which changes as per the need and requirement of the real-world business environment||MBA is a single-core based curriculum that is offered by the university. It will change once every 3-5 years.|
|A key focus of the course||To develop market systematic industry-oriented training. Practical knowledge, creation of real-life business circumstances, development of soft skills as well.||Generally, theoretical aspects of management, technical skills, and more exam-oriented are focused.|
|Course fee||The fee of the PGDM program is higher as compared to the MBA program. Fee for PGDM colleges generally starts from 5 lakhs and rises up to 15-20 lakhs depending upon the type of college.||The fee for MBA at government universities and colleges are low as compared to PGDM colleges. Fee for MBA may vary depending upon the type of MBA and type of college.|
|Award||PGDM is a Diploma course||MBA is a Degree Program|
|Course Duration||Two Years||One/ Two Years|
|Exams Organized by||By individual institute/college||By Universities|
|Entrance Exams||PGDM colleges can select from one of the 6 approved entrance exams. These exams are MAT, GMAT, CAT, XAT, CMAT, ATMA||MBA colleges generally follow university rules which are governed and controlled by the state government. MBA colleges take admission through state-level exams like TAN-CET, MAH-CET, MET-MP. And also self-examinations like SNAP, TISS, NMAT, IRMA, and IBSAT.|
- The basic and foremost eligibility criterion for is the completion of Graduation in any discipline or stream (or equivalent) from a recognized university.
- It is mandatory for candidates who wish to pursue a Full-time MBA, to score a minimum of 50% in Graduation and for the reserved category, it is 45%.
- Final-year appearing candidates are also eligible to apply for MBA but they have to present the proof of completion of Graduation degree within the duration specified by the institute or college.
- Quality business schools generally prefer those candidates have at least a few years of professional work experience in the relative field before starting their MBA program.
The MBA entrance exam is becoming very popular these days. In a generation where most parents are giving their children only two career options to choose from, it makes one wonder how much students are getting attracted to the MBA. Even candidates who have work experience are leaning towards an MBA degree. After experiencing the corporate culture and realizing how much trouble it takes to work as an employee, people now want to see themselves as an entrepreneur or a manager. An MBA degree is helpful either. Not only this, students with dollar dreams are appearing for their MBA exam abroad.
For pursuing MBA, a candidate must write an Entrance Exam especially to get a seat in the topmost colleges in India like IIMs. Almost every top b-School which can give high boosting points to your career MBA needs scores of your Entrance Exams like CAT, MAT, etc. There are some colleges and institutes where there is no need for appearing in an entrance exam. So one can get admission in MBA without entrance in some colleges but it will not be much help to his career.
Following are some of the top entrance exams for getting admission in topmost colleges of India:
- CAT – Common Admission Test
- MAT – Management Aptitude Test
- CMAT – Common Management Admission Test
- ATMA – AIMS Test for Management Admissions (ATMA)
- NMAT – NMIMS Management Aptitude Test
- SNAP – Symbiosis National Aptitude Test
MBA is a degree that can be pursued by anyone irrespective of the stream selected earlier. The only thing which is required for doing MBA is the completion of a Bachelors’ degree in any stream from a recognized and approved university/institute. As an MBA is one of the most preferred options after completion of bachelor’s, most of the students run to pursue MBA just after completing their graduation. But before taking any decision, students should properly research the colleges offering MBA courses as every college advertises itself as the best college for MBA. So it is necessary to do due research before making a decision to ensure that you find the best college that suits your requirements perfectly. Some of the important points to consider while selecting a college for pursuing an MBA are:
- Recognitions and approvals – Make sure it has the right recognitions and approvals from all of the authorities. Recognition and approval for an MBA college are integral is very important as it will directly affect the value of its Degree.
- Faculty – The faculty should be experienced and should be mastered in their respective fields.
- Placement– Placement is the foremost thing which is considered by a student for taking admission in any college. The college must possess a good placement record. And it should be connected with major organizations to give their students the best chances of placements.
- Infrastructure– Infrastructure is also considered while selecting a college. It plays a vital role in the overall development of the student. Therefore, the college should employ advanced technologies in their infrastructure and should be well-equipped with facilities like library, computer labs, etc.
- Location and Fee– Location and Fee are also a very important factor. Location should be favorable to the student as it may later become a hindrance for the student. Some college charges more fee but doesn’t provide that many facilities. So students should evaluate whether the college charges a reasonable amount as a fee.
Above mentioned point are general factors which affect the selection of a particular college. These are many other points that you should consider before choosing a college like specialization provided by the college, internship program, industry visits, foreign tour, etc.
|IIM Ahmedabad – Indian Institute of Management (IIM-A)||Ahmedabad|
|IIM Bangalore – Indian Institute of Management (IIM-B)||Bangalore|
|FMS – Faculty of Management Studies, University of Delhi||Delhi|
|IIM Calcutta – Indian Institute of Management (IIM-C)||Calcutta|
|XLRI Xavier School of Management||Jamshedpur|
|IIM, Lucknow – Indian Institute of Management||Lucknow|
|IIM, Udaipur – Indian Institute of Management||Udaipur|
|IIM, Kozhikode- Indian Institute of Management||Kozhikode|
|IIM, Indore – Indian Institute of Management||Indore|
|IIT Kharagpur -Indian Institute of Technology||Kharagpur|
|IIT Delhi- Indian Institute of Technology (Department of Management Studies)||Delhi|
|IIT Bombay – Shailesh J. Mehta School of Management IIT||Bombay|
MBA specialization means studying a particular business domain of management. There is numerous specialization offered in MBA. Usually, in the first year of the MBA program, the focus is on completion of the core courses which are generally similar to all the students choosing a different specialization. These core courses are designed to build a strong foundation of the basic concepts of management across various management subjects. After completion of the core courses, students can choose the area in which they want to specialize. Whatever specialization you have selected, you will be offered by your college proper theoretical knowledge and training in that specific domain to prepare you into management professionals.
Choosing specialization is a tough task as it needs proper attention towards it. There are numerous factors that may influence your decision regarding the specialization of MBA.
Factors affecting decision making regarding MBA specialization are as follow:
- Market demand –Sometimes candidates go beyond their Interest and choose that specialization which is in demand in the market. If a particular specialization of an MBA is preferred by most of the student then usually most of the other students follow their steps.
- Interest area– Having an interest in something makes it easy and enjoyable to do, so as for the MBA specialization. Student prefers that specialization which is related to his/her long term career goal.
- Preferred job profiles – For getting a particular job profile, specialization can be chosen according to that.
- ROI of the specialization– Everyone wants to get the higher package but sometimes in some specialization there is a chance of getting higher packages as compared to others. ROI plays a major role in affecting the decision regarding specialization.
- Scope of the specialization – The scope of a particular specialization plays a vital role in decision making. Students generally want to choose that specialization which has a wide scope.
Following are some of the most preferred specialization of MBA:
|Human Resources||Energy & Environment|
|Operations||Import & Export|
|Product||IT & Systems|
|Business Analytics||Healthcare & Hospital|
|Digital Marketing||Business Economics|
|Entrepreneurship||Agriculture & Food Business|
|NGO Management||Oil & Gas|
|Project Management||Rural Management|
|Sports Management||Supply Chain|
|Transport & Logistics||Forestry|
At the beginning of the MBA Course, common topics and subjects are taught which will be the same for every student even if they have selected different specializations. This time period is usually a year for a two year MBA program. After the first year and completion of the core subjects, students are then provided both theoretical and practical training based knowledge in the second or final year. Practical knowledge and training is a vital part of an MBA. MBA is one of the most preferred degrees because Practical knowledge is the most important pillar of it. The Semester wise subject of MBA is given below:
|Organizational Behaviour||Business Communication|
|Marketing Management||Financial Accounting|
|Quantitative Methods||Information Technology Management|
|Human Resource Management||Managerial Economics|
|Organization Effectiveness and Change||Management Accounting|
|Management Science||Operation Management|
|Economic Environment of Business||Marketing Research|
|Financial Management||Management of Information System|
|Business Ethics & Corporate Social Responsibility||Strategic Analysis|
|Legal Environment of Business||Elective Course|
|Project Study||International Business Environment|
|Strategic Management||Elective Course|
Everyone wants to pursue MBA due to its increased importance. But before opting for this option one must be capable of answering why they want to do an MBA. After knowing why you want an MBA degree you can prepare as per your needs and goal. Roles like Client relations; consulting, business planning, resource or system analysis may be a part of your job profile.
The main reasons which are the point of attraction for doing an MBA these days:
- It earns you more money
- It gives a chance of promotion in your job
- It helps you quit a job that bothers or irritate you.
The following are some of the career options which are present to an MBA graduate after the completion of the course.
|Career options after MBA|
|Finance Manager Marketing ManagerSales ManagerHuman Resources ManagerOperations ManagerProduct ManagerData Analytics ManagerDigital Marketing ManagerAdvertising Sales ManagerNGO ManagerProject ManagerTelecom ManagerTransport & Logistics ManagerInfrastructure ManagerInternational Business ManagerRisk ManagerEnergy & Environment ManagerImport & Export ManagerIT & Systems ManagerHealthcare & Hospital ManagerMaterials ManagerRetail ManagerSupply Chain ManagerPublic Policy Manager|
Generally, MBA holders get a good salary package as compared to other degrees of the same level. But there are numerous factors which will decide to earn particular MBA graduates. The following are the factors that affect the earning of an MBA holder.
- Level of experience– It is one of the most important factors in deciding anyone’s salary. Experience makes a big difference to the earnings the MBA holder will receive.
- Geographic location– It is also a consideration since the cost of living varies depending on the city and state of employment.
- Institute or College– Another major factor is the Institute or college in which you choose to pursue an MBA. For instance, Salary offers to vary widely between the government or non-profit sector and private sector industries.
- Specialization– Area selected by the student can affect your earnings
Salary offered to different roles of MBA graduates are given below:
|Jobs after MBA||Average Salary Per Annum|
|Human Resources Manager||4|
|Data Analytics Manager||14|
|Digital Marketing Manager||4.5|
|Advertising Sales Manager||8.5|
|Transport & Logistics Manager||6|
|International Business Manager||9|
|Energy & Environment Manager||6|
|Import & Export Manager||6|
|IT & Systems Manager||7|
|Healthcare & Hospital Manager||4|
|Supply Chain Manager||8|
|Public Policy Manager||7|
Salary is not the only earning of the MBA holder, there are many other benefits which are offered to them. Most of the employers also grant benefits other than annual earnings. Even if you are just starting out as an MBA graduate, you may get a signed bonus as well as a benefit package. In addition to those perks, the most common additional compensation for MBA holders is performance-based bonuses, stock option or purchase plans, profit sharing and tuition reimbursement.
Almost every company hires MBA graduates of different specialization. MBA is considered a course that focuses on the job training, skills and knowledge building. Therefore it is one of the most preferred courses. In the MBA, students are prepared as per their specialization and need of the industry.
|EXL||Larsen & Toubro|
|JP Morgan Chase & Co.||HSBC|
|McKinsey & Company||Nestle|
|Aditya Birla Group||Cipla|
|Asian Paints||Bain & Company|