Needs assessment at the organization level is usually conducted by performing an organizational analysis. Organizational analysis is a process used to better understand the characteristics of an organization to determine where training and HRD efforts are needed and the conditions under which they should be conducted. This type of analysis requires a broad view of an organization and what it is trying to accomplish. This may include goals and objectives, reward systems, planning systems, delegation and control systems, and communication systems.

Understanding an organization’s goals and strategies provides a starting point in identifying the effectiveness of the organization. Effective areas can be used as models, and as a source of ideas for how things can be done more effectively in other areas. Areas where goals are not being met should be examined further and targeted for HRD or other appropriate efforts. An awareness of an organization’s resources is useful in establishing HRD needs. Knowledge of resources, such as facilities, materials on hand, and the expertise within the organization, influences how HRD is conducted.

If the climate is not conducive to HRD, designing and implementing a program will be difficult. For example, if managers and employees do not trust one another, employees may not participate fully and freely in a training program. Communicating the link between HRD activities and the organization’s strategic plan to operating managers and employees makes the importance of HRD programs clear and may help generate support. Strategic/organizational analysis can lead to tailored training and HRD programs that fit the needs of the organization.