Editing photos without Picture Manager
Microsoft Office Picture Manager isn’t included in the new Office—but if you need a standalone photo editing program, you can download Windows Live Photo Gallery for free.
Or use Word to edit photos. Word has many built-in photo editing features, so you might not need a separate program. After you insert a picture in your document, click it, and then click the Picture Tools Format tab.
In Word, you can choose color variations, crop, compress at different levels, and apply some special effects.
For more details on formatting and resizing pictures in Word, see these articles:
If you still need more specialized features like noise reduction, red eye elimination, or straightening, Windows Live Photo Gallery is your best bet.