Self referencing parent-child hierarchies (i.e. Manager-Employee) are a common structure, They should be supported in your grouping mechanisms. 

Currently this is only possible thru a workaround as in http://www.telerik.com/forums/cross-tab-report-with-a-self-referencing-hierarchy#7p4BaddGV0iam8J6bT_dpQ

I believe an enterprise reporting tool should support this out of the box.

Thanks,
Henry