The training and development need of an organization can be identified through the following steps:

Step 1: A Concern

The process of identifying training needs originates slowly and informally with a concern. This concern is
referred to as the pressure point and might be as subtle as noticeable like treating customers in an abrupt
manner, observing that employees are spending a lot of time asking one another for help with a new
system or from external environment like changes in legislation regarding employee retention,
competition introduced through a highly competitive feature or through the problems threaten by public
health and safety.

Step 2: Importance

After the concern has been raised, the next step is to determine whether the concern is central to the
effectiveness of the organization. It is concerned with the strategic orientation of the organization such
that goals, plans, introduction of products and services, changes in technology, practices and regulations
are to be clear. Human resource policies must be linked with the strategic direction of the company and
the training strategy should support the organizations efforts to achieve its goal.

Step 3: Consult Stakeholders

The next step is to involve the stakeholders who have a vested interest in the process and outcomes.
Support from Key Players in the organization is necessary from the beginning of the need analysis
process. Here the External assessors may meet with all the employees individually to discuss the results
of their evaluation, review their training needs and discuss next steps. All Stakeholders must buy into the
need analysis process to ensure that the data collection will result in accurate information .

Step 4: Data Collection

The next step in the need analysis process is the most expensive and involves the documentation of the
concern through the collection of information from the three level of analysis.

The three levels of need analysis are the organizational, the task and the person or employee. The
analysis of the organization provides information about its strategies and context and answers the
question. Where is the training needed in the organization? The task analysis provide information about
the tasks and relevant knowledge, skills and abilities needed to perform selected jobs and answers the
question, What knowledge, skill, and abilities are required to perform the job effectively? And a person
analysis provides information about the employees level of performance and answers the question, Who
needs to be trained?

Step 5: Needs Analysis Outcomes

The need analysis results in a number of outcomes that set the stage for the rest of training and
development process. Besides clarifying the nature of performance gaps, a needs analysis helps to
determine whether training and development is a good solution to performance problems or if some
other intervention might be more effective. If training and development is part of the solution, needs
analysis information is used to determine where training is needed in the organization, what type of
training is required, and who is the organization should receive training.