The purpose of this study is to assess the management capacity of WEOs and to identify thernmajor problems of management at WEOs in the Amhara Region.rnOrganizational structure, qualification and experience of educational managers and staffrnauthority and functions of management such as planning, decision making, allocation andrnutilization of resource and information flow were used as indicators to assess the managementrncapacity of WEOs.rnTo this end, the study was conducted in 5 zones, 22 WEOs and 105 schools. 20 ZED and 88rnWEO officials and experts and 105 school principals were used as the subjects of the study tornobtain the necessary data. Questionnaire, document analysis and unstructured interview werernthe instruments used for data collection. The data collected through the questionnaire werernanalyzed using percentage and mean rank statistical instruments.rnFindings from the data analysis revealed that no attention was given to educationalrnmanagement as a discipline even though every manager at all levels of the educational systemrnshould have been equipped with the necessary managerial skills in order to manage the systemrnefficiently and effectively. In most cases, the less qualified persons are assigned as heads ofrnWEOs. WEOs' education managers as well as other employees lack skills in and insights inrnto planning and management. Regarding the organizational structure, many of the positions inrnthe WEOs are low graded and there is only one position for graduates in each WEO. There arern2 to 13 vacancies in each woreda. Besides, the authority delegated to them is not adequaternenough for doing the job. Not only are the resources in the education sector inadequate, butrnalso the available scarce resources are not properly utilized. Unfair distribution, late arrival,rnimproper utilization and poor handling of instructional materials, following the wrong trend ofrnbudget allocation, failure to release budget on time, procuring poor goods and services,rninability to utilize the allocated budget and to handle conflicts are exactly attributed torninefficient management. In sum, these findings indicated that WEO has no capacity to managernthe education system.rnFollowing the findings and conclusions drawn, it is recommended that the REB inrncollaboration with the concerned sector bureaux- Regional Planning and EconomicrnDevelopment Bureau, Regional Finance Bureau, Regional Civil Service Commission andrnANRS council need to reclassify positions in the WEOs, develop new organizational structure,rnmake wider study and revise the criteria used for selecting and appointing heads of WEOs andrnschool principals, and develop different training packages in the area of educational planningrnand management to train employees that work in all levels of the education system