ABSTRACTThe research aims to formulate a model for improving employee performance atSragen batik micro, small and medium enterprise center. The research method is through a quantitative approach and data collection through observation, questionnaires, interviews, and documentation. The objects of research are all employees in the batik center MSMEs (Industry batik) Masaran Sragen.Data analysis method through "validity test, reliability test, path analysis and model designimproving employee performance. Based on the analysis, the model is declared goodness of fit and the variable that has the greatest influence on employee performance is the employee performance.The variable that has the greatest influence on employee performance on the performance of MSMEs is the incentive variable and wages.