Many students who wish to study a Postgraduate programme in management get confused when some institutions offer them a diploma while others promise for a Master&’s degree. They fail to distinguish between the two. The situation becomes more complicated when many institutes offering such diplomas say that the qualification is equivalent to a full- fledged degree. In the statutory set-up of India&’s higher education system, only a university recognised by the University Grants Commission can award a degree.

There are four types of universities in India — central, state, deemed and private self-financing universities. A number of universities have the authority to affiliate colleges or institutes. Students studying in these affiliated institutes are awarded degrees by the affiliating university. In the field of management education in the country, Indian Institute of Management do not have university status to date and can only offer only Postgraduate diplomas.

The regulator of technical education in India, All India Council for Technical Education had given its approval to many institutions. Such an institute could offer a Postgraduate diploma in management without university affiliation. These autonomous institutes also, therefore, cannot award degrees. This is the case as far as the statutory difference between a degree and diploma is concerned. In practice, as far as corporate employers are concerned, they are least concerned whether a student holds a diploma or a degree. Often, parents prefer a degree than a diploma. This may be particularly so in the case of subjects such as economics and English.

Many institutes offering diplomas have also addressed to such issues. In India, the Association of Indian Universities has the power to grant equivalence status to any diploma or degree awarded by any institute outside the Indian university system. A diploma without an MBA equivalence status does not allow a student to pursue a career in teaching or enroll on a PhD programme. A Master&’s degree is a must for these options.

However, in the case of institutes, which offer diplomas awarded equivalence, students completing the programme, are eligible for teaching posts and PhD enrolment. Since a university awards an MBA degree, its fee structure is regulated by the state. And in most cases, the fee is much lower than what AICTE-approved autonomous institutes charge for postgraduate programmes. For students whose objective is just to acquire a qualification in management, an MBA degree is a cheaper option than a diploma.

However, barring a few instances, autonomous institutes offering the PGDM attempt to score on the placement record. Student should therefore, take a decision depending on their personal circumstances, purpose and fee structure of the various options available.