What is the defining characteristic of a Flat Structure?

A flat structure is characterized primarily by having few layers of management. This design minimizes hierarchy, allowing for a more direct communication flow between employees and management. With three or fewer management layers, employees often experience greater accountability and autonomy, which can enhance decision-making and increase operational efficiency. It contrasts with more traditional organizational structures that tend to have more levels of management, where communication can become slower and less efficient due to the bureaucratic layers.

The other options do not accurately encapsulate what defines a flat structure. For instance, having multiple departments organized by function typically indicates a more traditional or functional structure, which includes many layers of management. While including project managers overseeing teams suggests a project-based structure, it doesn't specifically point to a flat hierarchy. Lastly, a bureaucratic environment is often associated with tall, hierarchical organizations where red tape and rigid procedures dominate, which is contrary to the flexibility and responsiveness characteristic of a flat structure.