Passwords Troubleshooting Guide
There is no tag or way to send a user their password via email. This option was eliminated for security best practice reasons in a 2013 release. Instead, an administrator can enable the Require confidential password reset and send email notification to user preference setting and enable and configure the Forgot Password email with the Password.Reset.URL tag.
The Admin Password Change email is triggered if the administrator temporarily changes the user's password. However since a 2013 release, there is no tag or option to send the user the password the administrator created via email. It can be communicated via other means outside the system.
It is a recommended best practice to instead only allow administrators the option to send the user the Forgot Password email which can include the Password.Reset.URL tag. This sends the users an email allowing them to reset their password via a link in the email.
The Security Preferences option that controls the options that an administrator has to reset the users password is titled Require confidential password reset and send email notification to user. Unchecking this option allows the administrator to change a users password or to send the Forgot Password email. Checking this option allows the administrator to only send the Forgot Password email.
Yes, this is a preference setting option in Security Preferences.
If users do not have an email address, it is recommend that you enable Security Questions. Then, users are prompted to answer pre-established security questions.