Raj
This can be removed by depth and it can be restricted Usually SAP_MANG, PTESSDIR, SBESX, ie OSP is a simple evaluation path
check the standard ones available at T77AW and use one of them in your rules above
or in your evaluation path, if you select option exclude managers, it ll exclude all the subordinate managers, under the current manager, and take into account you can use BAdI HRWPC_EXCL_MANAGERS to fulfill your own requirements.
>> I think you don't want this one 
. But verify
Anyhow, you need to restrict the evaluation path and use a simple one instead of looking at the subordinate of subordinates, try these options.
FM can restrict th structure when it is constructing it! Please refer it and debug.
You could also use the function module HRWPC_OADP_TEST to test the OADP
customizing.