Managing Administrative Units in Microsoft 365

Administrative units allow the delegation of active directory administration to subsets of custom-defined users, groups, and devices. When administrative units were first made available, they could only be managed via the Azure portal, PowerShell, and Microsoft Graph. While this course looks at administrative units in general, it pays special attention to Microsoft 365 admin center functionality. The overview looks at what administrative units are and why you use them, followed by an in-depth look at what scenarios they support and their limitations. We then create an administrative unit through the Microsoft 365 admin center and see how it looks when viewed through the Azure portal.

Learning Objectives

  • Overview of administrative units
  • Administrative unit use cases and limitations
  • How to create an administrative unit through the Microsoft 365 admin center

Intended Audience

  • This course is intended for students who want to learn about administrative units, their use cases, and how to implement them
  • Students who intend to take the MS-100 exam: Microsoft 365 Identity and Services


  • Have used the Microsoft 365 admin center and Azure portal, know what Azure Active Directory is, and optionally, have an Azure Active Directory Premium P1 subscription

Hi and welcome to this Managing Administrative Units in Microsoft 365 course. My Name is Hallam Webber, and I'm an Azure instructor with 25 plus years of experience in the IT industry, and since 2014 I've focused on Microsoft Azure cloud technologies.

In this course, we'll learn what administrative units are in the context Microsoft 365 and how they can be used to delegate administrative permissions over sub-groups of users. We'll start with an overview of administrative units and look at the use cases they are designed to address. Then we’ll move on to creating an administrative unit through the Microsoft 365 admin centre.

This course is intended for students who want to learn about managing administrative units in Microsoft 365 as opposed to Azure Active Directory, although there will be some overlap between the two methods.  While this is not an especially technical course, you should be familiar with user administrative concepts such and roles and user groups.

When I created this course, all information was current. If you have any feedback, positive or negative, or if you notice anything that needs to be updated or corrected, please reach out to us at

Let’s find out about administrative units in Microsoft 365.

About the Author
Learning Paths

Hallam is a software architect with over 20 years experience across a wide range of industries. He began his software career as a  Delphi/Interbase disciple but changed his allegiance to Microsoft with its deep and broad ecosystem. While Hallam has designed and crafted custom software utilizing web, mobile and desktop technologies, good quality reliable data is the key to a successful solution. The challenge of quickly turning data into useful information for digestion by humans and machines has led Hallam to specialize in database design and process automation. Showing customers how leverage new technology to change and improve their business processes is one of the key drivers keeping Hallam coming back to the keyboard.