This policy is also called a 'Master switch' for managed clients.
It enables management of password for local administrator account. Only when enabled, managed clients manage password of local account.
If you enable this policy, local administrator password is managed
If you disable or not configure this policy, local administrator password is NOT managed. Managed clients only log verbose message that password management is not enabled, and do not perform any other actions.
|Registry Path||Software\Policies\Microsoft Services\AdmPwd|