Is the PMP Certification Better Than MBA?

It is difficult to pick and place one over the other. PMP and MBA have their own standing in the market and perceived as a status symbol. MBA is a Master's Degree in Business Administration.  PMP is an expert certification in project management. MBA involves all the aspects of business and strategy from an organization and PMP is a focused study on the ten knowledge areas of project management and prepares the professionals for successful execution and implementation of projects. Both bring value to the table with added benefits - an MBA degree will give you more and advanced knowledge, PMP training certification will help you build core competency and develop expertise in project management!

An MBA with a PMP certification certainly increases your worth.

Masters in Project Management (MBA)

The MBA  is a master's program that is broad-based as it involves an in-depth study of a catalog of courses with regard to Business which hones your skills and knowledge. The MBA program is offered by a number of universities and colleges, and hence the demand from MBA holders depends upon the recognition of and reputation factors. Then again, MBA is costly and time-consuming. The Business Management facets covered as part of the curriculum include:

1. Marketing
2. Finance
3. Accounting
4. Organizational Behavior (HR)
5. Entrepreneurship
6. Strategy
7. Economics
8. Operations
9. Statistics.
10. Ethics

 PMP Certification

PMP certification in project management is offered by the PMI (Project Management Institute). PMP is rated as one of the top certifications in the industry and considered as the crown jewel in project management.

The Project Management Institute prescribes best practices in project management to effectively lead and manage projects by focusing on 49 processes and 10 knowledge areas as listed below:

1. Integration
2. Scope
3. Schedule
4. Cost
5. Quality
6. Resources
7. Communication
8. Risk
9. Procurement
10. Stakeholders

PMP and MBA – how do they differ?

Eligibility

PMP:

There are no particular graduation required to become eligible. Any degree will do. The prerequisites focus more on the project management experience the professional need to achieve in order to qualify for the PMP exam. So any graduate degree with 3 years or 4500 hours of experience in leading and managing projects will meet the requirement set by PMI to take the PMP exam.

• Four-year degree
• 3 years or 4,500 hours leading and directing projects
• 35 hours of project management education OR CAPM certification

MBA

Admission for MBA programs for well recognized and reputed colleges like Ivy-league calls for excellent performance in the GMAT (Graduate Management Admission Test ) exam or Common Admission Test (CAT). GMAT and CAT are very tough and highly competitive, and only top scorers are considered who will have to clear further rounds of discussion and interviews. This criterion is not compulsory to do an MBA program and not at all a prerequisite. The major prerequisite to an MBA program is any under-graduation.

Validity or expiry

The PMP certification is valid only for 3 years and has to be renewed once in 3 years. There is no need to take every 3 years the PMP exam again. To maintain the “active” status of the PMP certification, please study the “how to renew PMP certification.” The “active “status can be verified from the PMI registry.

There is no expiry for an MBA degree. Once you successfully earn your MBA degree, It is valid for a lifetime

Responsibility

A business manager with an MBA is responsible for managing all the aspects of a business. A PMP certified project manager is responsible for the successful execution of the project from start to finish. Their focus is on project management and their business goals or triple bottom line is confined to the projects or projects engaged.

Why is PMP better than an MBA?

• For starters, there are too many colleges and universities offering both degree and diploma in MBA. So the supply exceeds the demand and brings down the demand. Unless you graduate from world-renowned colleges/universities, head hunters aren’t that inclined to shortlist your profile based on an MBA degree.
• PMP is niche. Elite. Exclusive. There are only 1 million certified PMP professionals. The need for qualified PMP professionals is around 2.1 million per year as per the PMI-commissioned talent gap analysis. So the demand for PMP is huge.
   
• PMP professionals possess technical and managerial skills. MBAs study end-to-end on the business side only. MBAadmittedly is broad in business skills and knowledge, while PMP is a structured and specialized study of project management. Every organization runs on projects and needs managers both on business and technology and that’s where PMP will have an edge.
   
• PMP is inexpensive and less in duration as compared to an MBA which takes time and more spending as part of the cost of education.

The returns on investment are better in PMP than MBA

Surely, in the short term, PMP is higher in ROI. MBA will need more time to recover investment and longer to see the returns on investment.

The Average Salary for People with Master of Business Administration (MBA) Degrees in the united states is  $100,000. The Average Salary for Professionals with PMP certification in the united states is  $105,000. So it's almost the same.

But the cost and time invested in earning an MBA degree are much higher as compared to PMP. Fulfilling the prerequisites, you can become a PMP certified professional within 6 months by spending something over $2,000. And what is the salary drawn by an average PMP professional? $105,000. So an investment of $2,000 empowers you to earn $105,000.

The MBA program is time and effort-intensive and. It takes 2 years with a tuition fee of $97000 [ MBA from Harvard costs $97000 ] and the average salary for an MBA professional is $100,000.

PMP: In 6 months, spending $2,000 to earn $105,000

MBA: In 2 years or 24 months, spending  $97000 to earn  $100,000

Do the math, and you will find out the yield is higher in PMP. In the long run, MBA can fetch the returns but PMP has a great head start.

Is PMP certification is a valuable addition to MBA?

It depends. One cannot even attempt to answer or hazard a guess.

The portfolio chosen by the MBA professional as a career choice matters. Some MBAs are into Finance, Marketing, Branding, where a PMP doesn’t complement. 

For some organizations, projects are the main source of income. In such a set-up, MBA with a PMP certification is a killer combination as the organization’s day-to-day operations as well as the project execution with technical prowess is greatly complimented.

It’s a known fact that PMP professionals earn 23% more than non-certified. PMP has become a must-have credential as witnessed by our times.

Project-based organizations always prefer to have PMP certified managers for their functional knowledge and managerial abilities. PMP is also known Hence it can help MBA holders with a PMP in finding job opportunities, increased pay, career acceleration and job retention during a recession. 

In conclusion, an MBA with a PMP would be more rounded as the common denominator in both MBA and PMP is business. PMP is also considered a good certification in business. So an MBA with PMP strikes a good balance between managing projects and business.

Recommended post:

• What is PMP?
• Key Features of PMP® Certification Training
• Top 10 Reasons to Get PMP® Certified
• How To Qualify PM Experience In PMP Application Form
• The Step By Step Procedure To Fill The Application Form

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