> For the complete documentation index, see [llms.txt](https://oten.gitbook.io/identity-support/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://oten.gitbook.io/identity-support/user-guide/organization-admin-app/business-owner-default-authority/organizational-structure/organizational-units-ous.md).
# Organizational Units (OUs)
### Scope
This document explains how **Custom Organizational Units (Org Units)** are used to define and manage a hierarchical organizational structure within a Business Organization.
Org Units are optional and intended for **administrative organization, policy application, and delegation**, not direct permission control.
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### I am new. Where should I start?
If you are new to Organizational Units:
* Start with the **default root Org Unit**
* Only create additional Org Units if your organization has multiple departments, teams, or business functions
* Use Org Units to structure users and policies, not to replace roles
Small organizations may not need Org Units at all.
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#### Purpose
Organizational Units help organizations:
* Model real-world hierarchies\
\&#xNAN;*(for example: Company → Department → Team)*
* Group users logically without relying only on roles
* Apply security policies at different organizational levels
* Delegate administrative responsibilities more granularly
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#### When should I use Organizational Units?
Organizational Units are useful when:
* Your organization has multiple departments or teams
* Different groups require different security or access policies
* Administrative control needs to be separated by business function
* You want policy inheritance based on organizational structure
> **Note**\
> Using Organizational Units is optional.\
> Small or simple organizations may operate effectively without them.
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#### Prerequisites
Before creating Organizational Units, ensure that:
* You have administrative access to the organization
* You understand your organization’s internal structure
* A root or parent Organizational Unit already exists
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### I already understand. How do I proceed step by step?
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#### 1. Open Organizational Units
* Sign in to the [Admin Console](https://admin.oten.live/).
* Navigate to [Organizational Units.](https://admin.oten.live/organizational-units)\
\
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#### 2. Create a New Organizational Unit
* Click **Create Org Unit**\
\
* Enter an **Org Unit name** (required)
* Optionally, enter a **Description** to explain the unit’s purpose
* Select a **Parent Organizational Unit**\
**UI highlight:**
* Org Unit name field
* Parent Org Unit selector
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#### 3. Define the Parent–Child Relationship
* In the **Select Parent Org Unit** section, search for an existing unit
* Select the appropriate parent to define the hierarchy
* Confirm the selection\
\
> **Note**\
> Every Organizational Unit must have a parent, except the root unit.
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#### 4. Create the Organizational Unit
* Review the Org Unit name, description, and parent
* Click **Create Org Unit** to save
After creation:
* The Org Unit appears in the organizational hierarchy
* Inherited policies are applied automatically\
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#### 5. Manage Users and Policies (Optional)
After creating an Organizational Unit, administrators can:
* Assign users to the Org Unit
* Apply security policies at the Org Unit level
* Delegate administrative roles scoped to that Org Unit