There are many different levels of management and at the lowest level, those managers only need to see their direct reports in their "my team: section. They do not need to see the "your direct manager, team members working under your direct manager, and your direct reports.- clarizen user manual ". Is there some way to adjust this either by user or in setting somewhere?
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Yes there is, but it is slightly hidden. At the far bottom left corner of the team panel you will see a gear icon. Click on that you will will be able to choose to show "sub teams" (direct reports of direct reports) or not. You can also create a new user group and select that group instead of "My Team."