What is your CM version? Here is the latest documentation on Cloudera website. The step 3, 6 and 7 maybe the answer to your question.
Hi @kiranpune ,
Based on step 7 below, the answer is yes that you need to add the user in OS level.
Make sure all hosts in the cluster have a Linux user account with the same name as the first component of that user's principal name. For example, the Linux account joe should exist on every box if the user's principal name is joe@YOUR-REALM.COM. You can use LDAP for this step if it is available in your organization.