In most organizations, there are managers who not only manage individuals but also manage managers.
It is possible to allow managers to view and fully manage their whole organizational structure rather than just their direct reports. To do so, there's a 2 step process:
First, as an administrator, you need to enable this for your company. To do so, you need to change the setting for "Managers view whole reporting line" under:
Administration > Company > Settings > Display Settings
You can set this to "Whole organization" from the default setting of "Direct reports only".
Once this is enabled, it is then down to individual managers if they want to enable this and they can do so via "Localisation" in their profile dropdown menu.
Under "Localisation", there is an option called "Organizational depth" whereby the manager can choose to change to "My whole organisation" from the default of "My direct reports only" and vice versa.
To illustrate what this means, below is an organizational chart with a fairly common type of structure. Typically, a manager will only view their direct reports. As a result, their employee list, reporting, and so on will be restricted to the below:
However, by enabling "Whole organization" view at a company and individual manager level, the manager will then be able to fully administer the below including all the employee files listed under the employee module, included in reports, and so on. As you would expect they can only ever see downwards and not upwards:
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