The Master's degree paper provides the analysis of pay system in State owned company Telšiai Region Roads; theoretical and practical aspects of its creation and implementation. The survey data allowed us to identify and evaluate employees’ expectations and state the drawbacks. To improve employees’ interest towards work an empirical research was carried out during which the main functions of work organization in a company were evaluated, related problems were identified as well as their causes and possible solutions to them. The research results confirmed the author's hypothesis that there are some considerable problems regarding creation and implementation of pay system in an organization, which hinders the state enterprise from successful further development.