Final answer:
Executives hope to gain better control of subordinates, faster reactions to competition, and increased cost-effectiveness with fewer organizational levels. However, hearing 'bad' news more frequently is not an intentional benefit, but rather a potential side effect of the flatter structure.
Step-by-step explanation:
In a business context, executives hope that flattening organizational structures, which means having fewer organizational levels, will lead to several benefits. These benefits often include better control of subordinates, faster reaction to competition, and more cost-effectiveness. However, hearing 'bad' news more frequently and quickly is not necessarily something that executives hope for by reducing the number of organizational levels. While a flatter structure can indeed facilitate faster communication, which may sometimes include unfavorable news, it is not typically considered a direct aim of flattening an organization.
Flatter organizational structures are expected to create a more direct line of communication, which can streamline decision-making processes, make the company more responsive to market changes, and reduce overhead costs. This is illustrated by the move toward more collegial relationships between managers and workers, and increased solicitation of feedback from employees at all levels. However, the increased speed of communication could also mean that executives might hear negative news more directly and more often, but this is a byproduct of the structure rather than an intended goal.