I often see in many MySQL tutorials that people use command IDENTIFIED BY \'password\' both during user creation and granting him privileges.
For examp
It's just an added security measure. You might have different passwords for the same user on different servers, for example in a shared host environment. If it's your own server and you and your colleagues are the only ones who use it then you don't need to identify the users you grant privileges to.
If you identify users then only the password you specify can be used with that user to perform those privileges.