Needs assessment is the process of determining what types of training, if any, are necessary in an organization. Various factors might prompt a needs assessment: new equipment or technology, new product lines, or simply the perceived need for improvement in some skill.

The goal of this activity is to choose the appropriate component of the needs assessment for each concern.

A needs assessment includes analysis of the organization, the employees working for the company, and the tasks involved in performing a job. Only when there is a thorough understanding of these three components can a company make an informed and cost$-$effective decision about training strategy. A needs assessment answers questions in three broad areas: organization$$what is the context in which training will occur?; person$$who needs training?; and task$$what subjects should the training cover?