How to handle/extract Hierarchies in master data from R3

Hi Experts!!!

Iu2019m currently working on HR Implementation project and this is my first project. Implementation is being done in BI 7.0 and ECC 6.0. I have some queries regarding the extraction of master data from R3 as furnished below.

1. By default all the datasources are in 3.x technology and Iu2019ve migrated all the datasources with export and successfully performed InfoPackages and DTPS into their respective InfoObjects/Data targets. But when it comes to the masterdata datasources with hierarchies, Iu2019m unable to migrate them as there is no MIGRATE option in the context menu. When I tried to create infopackage, it asked me to create Transfer rules first and perform InfoPackage. Is it mandatory to work in 3.x technology (Transfer rules/ Update rules) in case of master data hierarchies? In this case how to handle datasources with hierarchies?

2. Is it required to have any data staging component like DSO while extracting master data datasources from SAP R/3 to their respective InfoObjects (Data targets)?? Or can I directly schedule Infopackage and DTP directly into the InfoObject with out any DSOS in between for HR master data??

Good day!!!