Hoshin Kanri （HK） as a management control practices vary considerably between organizations, although all tend to conform to a similar framework and concept. The purpose of this paper is to shed light on Toyota’s Kaizen activities based on corporate Hoshin （strategic direction） and identify how Toyota’s transplant in china uses HK to pursue the Kaizen activities continuously and create organizational learning capabilities successfully. I conducted a 2-week fieldwork and observed Hoshin planning and its implementing process. A variety of qualitative data indicates top-down and bottom-up HK planning process. Both top-management and middle-management pay attention to personal autonomy of frontline employees and their personal development. Also, data indicates that climate for learning is generated by management efforts and the organizational learning culture. As a conclusion, HK plays not only a strategy implementation function as previous research shows, but also a motivating and training function through OJT as well in Toyota’s transplant.
