Here are some common permission settings for Project Manager in an organization:
Can only add Placeholders, No right to add any person to their projects
If the Project Manager is:
Responsible for managing the project details of their projects (set up the roles, budget, phases and milestones)
Has the right to only add placeholders to represent demand for resources
Do NOT have the right to directly add any named people to their projects
User Permission Setup:
User Type - Manager
Manage Projects - Restricted
Manage People - View Only
Add People to Managed Projects - Managed People (Since their Manage People setting is View Only, they don't manage people and cannot add people to managed projects)
Select Restricted Projects for a Manager
Check out this help article to add the Manager to their projects.
Can only assign their team members to their projects
If the Project Manager is:
Managing their own team's projects and people
Has the right to add only their team members to their projects
Do not have the right to edit other team's projects
Do not have the right to allocate other team's people to their projects
User Permission Setup:
User Type - Manager
Manage Projects - Restricted
Manage People - Restricted
Add People to Managed Projects - Only Managed People
Select Restricted Projects/People for a Manager
Check out this help article to add the Manager to their projects.
Check out this help article to add the Manager to their people.