There are some logic problem. For example:

> administrator auth management can be done throgh appadmin interface.
> how to disable registration for group 'employee' and enable registration for
> group 'department manager'?

registration happens before the user is logged in therefore you do not
know if the user attempting registration belongs to group employee.

If you mean for a user (not employee) to register others, than you can
create your own page

@auth.requires_membership('administrator')
def register_other(): return dict(form=crud.create(db.auth_user))

> and is there easy way to manage passwords for each
> group and send email by batch for department manager and administrator?

managerid=auth.group_id(role='manager')
administratorid=auth.group_id(role='administrator')
users =
db(db.auth_user.belongs(db(db.membership.user_id==db.auth_user.id)
(db.membership.group_id==managerid)._select()|
db.auth_user.belongs(db(db.membership.user_id==db.auth_user.id)
(db.membership.group_id==administratorid)._select()).select()
for user in users: mail.send(to=user.email,message='hello')

> again, many thanks,
>
> Frank    

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