Template to make Atchive page for Custom Post Types Filtered by Custom Taxonomy

Hi,

I have a custom post type (people) organized by a custom taxonomy (departmental_role). I want to have archive pages that display that automatically display the people attached to each role. So, in my menu I’d like ot have pages like:

People –> Faculty –> Undergraduate Faculty
People –> Staff
People –> Students –> PhD

What’s the best way to do this? It seems that the custom template hierarchy doesn’t exactly apply, is that correct? Thanks,
Matt