Azure Management Groups are a feature in the Microsoft Azure cloud platform that helps organizations manage their subscriptions and resources more effectively. They allow users to organize multiple Azure subscriptions into a hierarchy, making it easier to apply governance and policies across all subscriptions at once. By using management groups, organizations can enforce compliance and security standards consistently. This structure enables administrators to manage access, policies, and compliance across various departments or projects, ensuring that all resources adhere to the same rules and regulations, ultimately simplifying management and oversight.