Assigning position hierarchy within Org Model

Hi,
have maintained the org model with sales org and position in crm 5.0. This position is President sales and would like to maintain General Manager under this position as a subordinate. While doing so, I get the following message:
<b>Before you select a function, select suitable entries in the structure.
    Message no. 5W707
Diagnosis
    You have chosen a function for which a selection of  suitable entries in the structure is a prerequisite.
Procedure
    Select one or more suitable functions in the structure and choose the function again. You can use the right mouse-button to display all the functions you can carry out for an entry.</b>
What else am I missing here
Thanks
Kumar

Hi Diana,
Thanks for the inputs. I have rewarded points.
As per your mail, we could maintain two positions under single organization unit one with the 'head of org unit' check and the other without that. Now they both appear under the same org unit but they appear as two positions (only difference is that the icons are different).
What I am looking at is, Sales Org 1 should have a sub tree (arrow mark) with Mgr Director position, when I drop down this positions arrow mark, then I only I should be able to see the General Mgr's position (the GM's position should not appear parallel to the MD's position on the tree structure but should be within the MD's position)
Can we assign any position to the head position by any standard means ?
Hope you got my requirement clear, else let me know I can explain in more detail.
Thanks
Kumar

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