Nothing really, you can consider it as "informational" attribute. It does not automatically grant the manager any permissions on any data associated with the user account. But some apps might have functionality built around managerial relationships, for example the "Team calendar" feature in Outlook.
Office 365 User Manager - How is it used?
April Eaton
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We're adding Teams, Sharepoint, and other apps to our email system. We're trying to figure out what exactly happens when we add a Manager to a user's account. Besides generating an organizational hierarchy, what does this affect? I've searched but the only thing I can find on the subject is how to add the manager, but not what the purpose of having a manager selected is or what options are available after setting up this feature.
Microsoft 365 and Office | Install, redeem, activate | For business | Windows
Microsoft 365 and Office | Install, redeem, activate | For business | Windows
Processes in Microsoft 365 for setting up Office apps, redeeming product keys, and activating licenses.
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Vasil Michev 123K Reputation points MVP Volunteer Moderator2024-02-03T15:53:02.17+00:00