You need to create a Hierarchical Report. Crystal Reports has  dialog box which does the work for you. I assume you have an employee table and within that table there are records that point to the employee's supervisor?

First create a report that groups on the employee id. The go into design mode and select Report > Hierarchical Grouping Options. In this dialog box, check to the box to do the sorting for you and then specify which field is the supervisor's field. This should get you set up.

I discuss more details about hierarchical grouping and custom formatting options in Chapter 3 of my book Crystal Reports Encyclopedia.