Hierarchical queries, is this example correct?

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I'm trying to understand this concept, but this example gives me a headache. I'd expect that it should behave somehow similarly like resursion/mathematical induction. On every step you have a current value and a rule based on which you can calculate the next value. So if you have a starting point start with ename = 'BLAKE' and connect by prior empno = mgr the resulting recursion should behave like the arrows i've painted on image, and not match every person to the starting point.
SQL QUERY

Thanks a lot

P.S. article i'm refering to

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