Best practices around building reporting relationships in OM

Hello Experts,
Would you please let me know the pros and cons of building the following kind of reporting lines in Organizational Management (OM):
1) Direct line reporting
2) Travel expense approval manager relationship
3) Compensation approval reporting lines
4) Performance and other reporting lines.
What do you all suggest and what's the best practices in this respect....just build one (the direct reporting) and that's it or you recommend building all kind of reporting relationships. Any thoughts and what you all have done on this!
Thank you very much.
saplover

I learned for Time Management, you need to have Chief not in the same org unit as his employees so he won't have access to approve his own time.  I wondered if same would apply for ESS / MSS?
Here are two different scenarios of maintaing this.  I learned that Scenario I would not work for Time Management for the reasons I listed above and Scenario II would work.  Can you provide some input?  what's SAP best practices on this? which scenario would be best practice?  Please help!
Scenario I     
*HQ Sales (Org Unit 1)     *     
     General Manager (Chief)     
     Sales Rep I     
     Sales Rep II     
     Sales Rep III     
Scenario II
*HQ Sales (Org Unit 1)     *     
     General Manager (Chief)     
     *HQ Sales (Org Unit 2)     *     
                Sales Rep I     
     Sales Rep II     
     Sales Rep III

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