The peer inference piece is what gets you.
Model the org chart as a graph where each employee is a node, and maintain explicit manager and peer relationships. Use union-find or graph traversal to infer transitive manager relationships, ensuring that peer groups are merged and manager links propagate correctly.
Pro tip: Clarify upfront whether peer relationships are symmetric and whether manager relationships are transitive, as these assumptions drastically affect the data structure and algorithm choice.
Ask if peer relationships are symmetric, if manager relationships are transitive, and if cycles are possible. Confirm that inferred relationships should be computed on-the-fly or precomputed.
Represent employees as nodes in a graph. Use a union-find (disjoint set) for peer groups and a directed graph (adjacency list) for manager relationships. Alternatively, use a single graph with labeled edges.
For 'set manager', add a directed edge and propagate to all peers of the subordinate. For 'set peers', merge their peer groups and unify their manager sets. For 'is manager', perform a reachability query (DFS/BFS) from the potential manager to the subordinate.
When adding a manager or peer, update all affected nodes to maintain consistency. Use union-find to efficiently merge peer groups and propagate manager relationships to all members.
Discuss time/space complexity: union-find gives near O(1) for peer merges, but manager queries may be O(V+E). Consider precomputing transitive closure for faster queries at the cost of update time.
AI-generated suggestions, not part of the candidate's original notes. May be inaccurate — verify before relying on them.