In most organisations, there are managers who not only manage individuals but also manage mangers.
It is possible to allow managers to view and fully manage their whole organisational structure rather than just their direct reports. To do so is a two step process.
Firstly, 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 to either "Whole organisation" 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 is an option called "Organisational 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 organisational chart with a fairly common type of structure. Typically a manager will only view their direct reports so their employee list, reporting and so on will be restricted to the below:
However, by enabling Whole organisation 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 employee module, included in reports and so on. As you would expect they can only ever see downwards and not upwards: