This report presents a comprehensive case study of Toyota's Human Resource Management (HRM) practices. It begins with an analysis of Toyota's external environment, including the automotive industry's nature, competitiveness, key stakeholders, and current trends. The internal analysis describes Toyota's organization, work undertaken, products, and services, along with its current strategy and organizational performance. The core of the report identifies five key HRM challenges at Toyota, such as reward system issues, corporate culture problems, inadequate training, poor supervision, and risk management failures. It examines the link between these challenges and HRM performance, utilizing the Harvard framework to understand the long-term consequences. The report recommends strategies to improve HRM's effect on organizational performance, including setting quality objectives, rethinking reward structures, improving recruitment, establishing training programs, and developing effective risk management plans. Furthermore, it emphasizes the need for a customer-centric HRM approach and the use of Key Performance Indicators (KPIs) to assess employee performance. The conclusion summarizes the key findings and recommendations for Toyota to enhance its HRM practices and achieve better organizational outcomes.