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In this case I would recommend you to add the new department names to the manage metadata store and merge the old departments with the new values. You shoul check out the following blog post http://term-management.com/2012/10/11/merging-terms-in-the-sharepoint-2010-term-store-2/


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It depends on how you set up your managed metadata, since both ways are possible. Using enterprise keywords enables a tagging system where users can select existing keywords or create new ones. It's similar to tagging a question here, where you select existing tags or, if you have 300 reps, create new ones if they are needed. Keywords have no hierarchy, so ...



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