Hierarchy for Site not reflected when filtering

Our Sites are used as following:

- Global
- - Region
- - - Country
- - - Country
- - Region
- - - Country
etc.

When selecting a Region when filtering in the people view, it does not return the people assigned to the contries within that region, it shows none. Our expectations would be that the hierarchy in the Site set up is for the reason of being able to use it this way. Please confirm if this is a bug or intended behaviour