Needs assessment at the organization level is usually conducted by performing an organizational analysis. Organizational analysis is a process used to better under- stand the characteristics of an organization to determine where training and HRD efforts are needed and the conditions under which they should be con- ducted. Kavita Gupta and colleagues refer to this type of analysis as a strategic analysis. For example, Scott Paper purchased a food service operation that suf- fered from low employee morale. An extensive needs assessment process resulted in the food service division implementing a succession planning and manage- ment development program. Within four years, product defects dropped dra- matically, on-time delivery rates increased to 98 percent, and plant capacity increased by 35 percent. The point to stress here is that the organizational anal- ysis they conducted (as part of the overall needs assessment) provided the impe- tus for a successful HRD effort, as well as the content for the actual development program.
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