hierarchical structures

Is there a way to create a hierarchical structure where a simple issue project can be housed in a project management project.

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No.  JIRA doesn't have that type of heirarchy.   All projects are equal.

You could try the Structure add-on if you want something more complex than Category, Project, Issue, Sub-task.  But I'd take a look at Portfolio - it doesn't really do what you describe here, but it does offer functionality which helps you work as though it did.

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Can you give more context here? JIRA Projects out of the box can be "grouped" by setting a "Category" but that's about it. What are you trying to accomplish here? 

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