You can now specify a password for a new Office 365 user, just as you would while creating an account in Active Directory.
In the past, while creating a new user in Office 365 using the portal, a complex password was generated automatically, was shown on the screen and emailed to the admin.
While it had the advantage of having a very complex password to start with, given that the user will be trying it for the first time and changing it to something they want meant that it is a bit more work for the admin.
Now you can specify a password when you create a new user in Office 365. The option to have an auto generated password still exists.
Happy days ;)