The main objective of this study was to investigate the practices and problems of decision making in preparatory schools of Horro Guduru Wollega Zone. To conduct this study, a descriptive survey design was employed. Out of the total population of 184,86 respondents (42 teachers, 12 principals and 20 students’ councils and 12 PTSA members) were included in the study. School teachers were selected by systematic sampling method while principals, PTSA and students’ council’s members were selected by availability sampling technique. The data were gathered through questionnaire, FGD and document analysis. Data gathered through questionnaire were analyzed through quantitative approach using percentages, mean, standard deviation and an independent sample t-test whereas data obtained through FGD and document analysis were qualitatively analyzed. The major findings of the study disclosed that decision making process in preparatory schools were practiced poorly in the absence of school communities’ involvement such as, in school budget preparation and disciplinary issues, whereas they were involved in decision making areas such as setting learning objectives and co-curricular activities. The study also revealed that students were mostly neglected from school decision making. Besides, the study indicated that school leaders were not effective in encouraging stakeholders and making decisions through scientific and systematic analysis. Moreover, fear of risk taking and unwillingness to share decisions with others were found to influence school decision making. It was thus concluded that the participation of teachers, PTSA and students in areas of school decision making was low. This is likely to affect the overall activities of schools in general and teaching learning process in particular. Thus, it is recommended that school leaders should make informed decisions through active involvement of stakeholders. Moreover, school leaders have to work cooperatively to reduce fear of risk taking, create strong sense of ownership, moral and recognition among stakeholders and encourage parents to show greater interest in their children’s education which in turn improves the quality of schooling and students’ achievement.