How many levels should an organization have?

When there are too many levels in an organization, roles become compressed and when there are too few levels, authority and decision-making can occur in a vacuum.  Common complaints from employees are: “It’s not clear who’s responsible for making decisions”, “everything seems to be so bureaucratic”, “my work overlaps so much with what my boss does, I don’t know what I’m responsible for”, “honestly, I have a lot of free time”, or “my manager is so far removed from my project that he can’t provide any value”.