Description
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OG subgroups module allows users with the right access permissions to set a group hierarchy. 
Admin can also set content and users propagation, which means a post created in one group can propagate down/ up/ sideways the subgroups tree. 
The same goes for subscribing a user or granting admin rights for the groups  this may be propagated along the subgroups tree as well.

OG subgroups module provides a block called 'Subgroups' that shows the subgroups tree. The block takes into consideration cases where a user can't access a private group but still has access to the node/xxx/subgroups. In such cases the group will appear as <private group>.

Dependencies
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* Organic groups - http://drupal.org/project/og

Documentation
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http://drupal.org/node/267277
