<inducement> ... <focusType>UserType</focusType> </inducement>
parentOrgRef and assignments
The correct way to create organizational structure is by using assignments. The sub-org should have assignment for super-org.
The parentOrgRef property reflects the state of the assignment. The assignment can be disabled, conditional, may have validity contraints, etc. If the assignment is valid, then parentOrgRef should exist. If the assignment is invalid the parentOrgRef should not exist.
The "rights" of super-org are not automatically applied to users that belong to the sub-org. Assignment does not do that, inducement does (see Assignment vs Inducement). So, org-to-org assignments are only applying "rights" to sub-org itself, not to users in the sub-org. If such "rights inheritance" is desired then an org-to-org inducements has to be created together with an assignment.
MidPoint will normally apply the inducement to all objects that are assigned to the org, regardless of the object type.
Therefore be careful about the inducement of the super-org that are designed to apply to users as these same inducements will also be applied to sub-orgs.
There is a way how to limit inducement applicability using the