Just created a simple SSRS report that shows the Hierarchy of the users and their manager.
This is how the report looks like
The DataSet query used
Select the row, right click and select group properties option
Select Grouping based on systemuserid
Toggle the visibility based on FullName
Select parentsystemuserid as Recursive Parent from the Advanced option
Set the Left Padding property for the fullname TextBox.
Set the expression for level as Level()
The posts from which I learned creating the hierarchical reports