Training through needs assessment diagnoses present problems and future challenges to be met through training and development. Organizations spend vast sums of money (usually as a percentage on turnover) on training and development. Before committing such huge resources, organizations will do well to assess the training needs of their employees. Organizations that implement training programme without conducting needs assessment may be making errors. Needs assessment occurs at two levels- group and individual. The areas of training needs could be knowledge, skill or attitudinal/ behavioral areas.

Job-related training needs are identified at a number of stages. At recruitment stage any immediate training needs can be identified by the line managers personnel and training officers. During appraisal training needs will be identified with following year objectives, during promotions because of additional responsibility the required training to be
Identified, personal needs can be identified by the individuals or their superiors and can pass on to HR to take the necessary training.