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How to manage Organization Tree effectively in view of re-orgs/restructures?

Summary:

Hello Experts

When a department name is updated Fx. HR to People effective 1st March 2025, new department will show if a report is run effective 1st March and prior to 1st March old name will reflect.

However, whenresulting restructures, new department (HR Support)  gets created and old department (HR Support)is inactive or two departments merging into one, hierarchy reports will showthe latest department name and date effective reports will not show the righthierarchy historically.

As understood earlier, Inactive Organizationshould not be part of tree version as  itmight give error in auditing and also in flattening.

For this scenario, we're trying to understand how best to maintain hierarchy so please share any best practices you're following/have developed in this regard.

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