Understanding Team Hierarchy

A team can consist of users, teams, and departments. When you add a user to a team, the user's immediate manager can also be included. However, there is no further inheritance (for example, the manager's manager). If you do not want the user's manager added to the team, you can clear this option on the Team Members tab.

Team Hierarchy Rules

In the Team Detail view, if the Automatically add user's manager to team option is selected, then each time a new user is added to a team, that user's manager is also added to the team, if they are not already a member of that team.
If a team member changes managers, and the new manager is not already on the team, the new manager is added to the team.
If a team member changes managers, the previous manager is not removed from the team. If the previous manager must not have access to the team, then they must be manually removed.