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. 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?