A Needs Assessment refers to a systematic process of identifying and evaluating the gaps between an organization's current workforce capabilities and the skills, knowledge, or resources required to achieve its strategic objectives. It involves a comprehensive analysis to determine what specific needs exist within the workforce and how best to address them to optimize performance and productivity.

Example
Suppose a technology company aims to expand its market presence by launching a new product line. A Needs Assessment in this context would involve assessing the skills and knowledge gaps within the existing workforce. HR professionals would analyze the current skill set of employees, identify areas where additional training or hiring is necessary (e.g., software development skills or digital marketing expertise), and devise strategies to fill those gaps. This assessment ensures that the organization's human capital aligns with its growth objectives.