Kaizen contributes the organization with incremental but remarkable change. Kaizen is characterized by incremental, easy and productive change in the system. There are three types of Kaizen in its typology namely Individual, Group and Management oriented. The third is considered to be the crucial one because it aims at the company strategy and requires the contribution of every personnel. Individual oriented kaizen emphasises the bottom-up approach, where employee recommends the solution to the problems. The group oriented kaizen demands employees to work in group like quality circles with an intention of finding problems during their business practice. This principle intends improvement activities and emphasises its importance through time, cost and product studies. One of the crucial determent in successful implementation of TQM is Continuous Improvement. MSMEs play critical role in the economic development of a country. Quality management of these MSMEs is would be critical for their stability. The aim of the paper is to examine the level of Continuous Improvement against employee productivity at MSMEs of Ballari, Karnataka. The universe comprised executive and non executive workforce of the firm. Sampling was carried out using convenient sampling technique with sample size of 50 in line with the Cochran formula. Data was collected using observation and informal interview methods. Descriptive statistics and Chi-square test was used to analyse the data. The research envisaged that all the factors of Continuous Improvement are associated with employee productivity at the MSMEs. The study revealed that Emphasize product and process studies and Use of QC tools of the MSMEs has significant influence on employee productivity.