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When the manager is synchronized from the HCM position hierarchy and you change the parent position, all assignments inherit the new manager from the current parent position. When you remove a position from the hierarchy, all child positions move one level up in the hierarchy. Hence, the grandparent position is the new parent position.
The incremental flattening process is triggered when you add or change a parent position. The flattening process will update the changes in the position hierarchy.
When you change the position in an existing assignment, the manager value is updated based on the parent position of the changed position. If the parent position doesn't have an incumbent, the incumbent in the position in the next level up in the hierarchy is the new manager.
I hope this blog post was helpful for you. If you have any questions or feedback, please leave a comment below.