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jyothi k 1jyothi k 1 

what is a hierachical relationship?

Explain with real time scenarios
Shashikant SharmaShashikant Sharma
Not sure in what context you are asking, but I will try to give a scenario where relationships are used to maintain the hierarchy.

Self Reference =>
Salesforce has a native bject "Opportunity", in some organizations opportunity is further separed in child opportunitties. So a Lookup field on Opportunity is created Parent Opportunity". Using this child opportunities are created. A child then can have its childs.

So if a Opportnity is Covering a Whole USA and has amount $10000000 , Child opportunities could be creaed based on region and assigned to regional managers. Amount could be distributed in child opportunites. 

 
 
Shashikant SharmaShashikant Sharma
If you were asking about User Object Hierarchial relationship then : 

Hierarchical
This type of relationship is a special lookup relationship available only for the user object. It allows users to use a lookup field to associate one user with another that does not directly or indirectly refer to itself. For example, you can create a custom hierarchical relationship field to store each user's direct manager. Tip
When creating a hierarchical field in Personal, Contact Manager, Group, and Professional Editions, you can select the Restricted Field checkbox so that only users with the “Manage Users” permission can edit it. In Enterprise, Unlimited, and Developer Edition, use field-level security instead.