A flat organization is an organization that has a low number of management levels. It means a low number of degrees of organizational units.
Flat organization in practice: Flat organization is very flexible in the decision making, because the flow of information from the lowest to the highest-ranking of the organization is fast and short. Small and medium enterprises are mostly flat organizations - have a flat organizational structure, which consists of the director and then the individual teams or departments. As organizations grow, they tend to increase the number of management levels to maintain the normal management span of control.