🏢 Manage Organizational Units in Microsoft 365

In Microsoft 365 (via Azure Active Directory), you can organize users and devices using **Groups and Administrative Units (AUs)**—similar to Organizational Units (OUs) in traditional Active Directory.

📘 What Are Organizational Units?

While Microsoft 365 doesn’t use traditional OUs like on-premises AD, **Administrative Units** serve a similar purpose in Azure AD, letting you delegate user management and apply policies by department, location, etc.

🛠 How to Create an Administrative Unit

1. Sign in to Azure AD Admin Center
2. Go to Azure Active Directory > Administrative Units
3. Click + Add
4. Enter a name (e.g. “HR Department” or “Delhi Office”)
5. Click Create

👥 Add Users to an Administrative Unit

1. Go to your newly created AU
2. Click Users > + Add members
3. Select one or multiple users and click Add

🔐 Delegate Admin Permissions (Optional)

1. Within the AU, go to Roles and administrators
2. Select a role (e.g. User Administrator)
3. Click + Add assignments
4. Choose an admin user or group and click Add