Departments are used to group users that have the same roles, permissions and content sources. Department mangement is located under the Company Management tab. To add a Department you must:
Later when you add users, you will group them into the departments with the associated permission sets and content sources that you have defined. You can keep the pre-defined departments, modify them, or delete them using the menu (3 dots) next to the department. Note that a department cannot have any users in it if you want to delete it.