If I have created the following Employee object (simplified)...
public class Employee
{
public Employee()
{
Yes, an object can contain references to other objects of the same class.
And secondly, I wouldn't create a new Employee in the cunstructor but inject it like this:
public class Employee
{
public Employee(Employee manager)
{
this.Manager = manager;
}
public String StaffID { get; set; }
public String Forename { get; set; }
public String Surname { get; set; }
public Employee Manager { get; set; }
}