Training needs assessment (TNA) is the best practice of training designs. It addresses within the organization where training is needed, what the content of the training should be and who within the organization needs to be trained. The purpose of the study therefore is to investigate into training needs assessment practices and its effects on employee performance at Ayum Forest Products Ltd. Employing a quantitative (questionnaire) and qualitative (interview) methods, 66 cases of employees of Ayum Forest Products Ltd (AFPL) were sampled. The study revealed that the company follows the practices and procedures of TNA at all the three levels: organizational analysis, task analysis, and person analysis in its training programs. The following necessary recommendations were made to improve upon TNA practices for higher employee performance at AFPL. Managers should approach needs assessment systematically by fully utilizing the three different types or levels of analysis: organizational, task, and person analysis. In addition, management should make sure that training is timely and focused on priority issues in order to realize its full effects on employee performance.