This is realy close to what I was thinking. But there needs to be a seperation between the Parent and the Child.
Party2 = Acme Inc
Party3 = Sales Department
Party1 = Jon Doe
Party5 = Bob Smith
Relationship 1
Parent = Party2(Acme Inc)___Child = Party3(Sales Department)____RelationShipType(Department)
Relationship 2
Parent = Party3(Sales Department)___Child = Party1(John Doe)____RelationShipType(Manager)
Relationship 3
Parent = Party3(Sales Department)___Child = Party5(Bob Smith)____RelationShipType(Assitant Manager)
This seems to me that it would allow the most scalability. I can not think of a org chart or baseball team or what not that could not be broken down into this model. Please correct me if I am wrong.