Signaling and screening are key approaches to minimize judgmental errors in situations where there is asymmetric information. One such situation occurs when a firm wishes to assess individuals for consideration as a prospective employee.

This report reviews and applies the different concepts studied to a car manufacturing company, Audi. The structure of the paper will be as follows: elaboration on various signaling approaches, an evaluation of the firm’s effectiveness and relative costs with respect to Audi, followed by showing the business outcomes subsequent to the use of different approaches. Finally, recommendations are made to allow Audi to boost its effectiveness in identifying the most suitable applicants.

The Audi Group (AG) has been named one of the most successful car manufacturers in the premium and supercar segment. A total of 1,751,007 cars have been delivered by the company to clients compared to the 1,634,312 cars in the past fiscal year. Conversely, a new record was constructed when the main brand ‘Audi’ amplified its total number of units delivered by 8.3% to 1,575,480 vehicles.

The AG manufactures in ten sites worldwide and these production sites consist of two plants in Germany while another eight other facilities are in Belgium, China, Hungary, India, Indonesia, Russia, Slovakia and Spain. Moreover, its front-line logistical practices; synchronised Audi assembly system and an extremely competent workforce of approximately 73,751 assure uniform standards globally.

Since each Audi production site attains high standards of excellence, productivity and conservational suitability, this could be the reason for the many awards received by the AG in 2014 which includes the ‘Best Employer Award ’and ‘World Car of the Year’.