The picture is a accurate representation of the army hierarchy on both the Wehrmacht and the Red Army. You have a few squads who make up a platoon, in our case about 8 squads make up a company. We have a few ghost companies we don't use in the server, but together with the real company it makes up for a division. (see the note below why we skip battalions and brigades) and those multiple divisions make up for a field army. (again see below why we skipped corpses)
Note: We are well aware of platoons, batallions, corps and brigades but we decided not to use them so we do not have to hand every single player a officer position and create too much hierarchy for players to follow, it stops confusion.