In the same way a corporate job will have people of the same rank working side by side, the military will as well. You can have Steve, Manager (Human Resources) and Melissa, Manager (Marketing) and Bob, Manager (customer support). They’re people managers that run their team; that’s basically what a Lt JG is.
Like most corporations, military bases/ships/posts are divided up into various departments. You might have the supply department, the medical department, operations, IT, food, etc. Each of those have senior leadership who oversee other officers, who themselves oversee even more people.
The hierarchy gets wider the further down you go, with individuals of the same rank often being responsible for very specific but different duties. The rank structure is pretty clear to those within it and having people of the same rank is rarely an issue unless one of them has a fragile baby ego.
As others have said, yes. The bit I’ll add that I haven’t seen is that in addition to raw seniority, who’s in charge is also determined by their job. So it’s pretty normal for Lt. Smith to report to Lt. Jones in the course of their work if Smith has a more senior role. In the most extreme case, the commanding officer of a vessel is the legal Captain, regardless of rank. If an Ensign (lowest commissioned officer rank) is put in charge of a boat, then even a Fleet Admiral (5 stars) is subordinate to them in that instance.
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