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Improved communication across departments is a key organizational benefit of a matrix structure because this design facilitates collaboration among employees from different functional areas. In a matrix structure, employees typically report to both a functional manager and a project manager. This dual-reporting system encourages sharing of information and resources, leading to enhanced coordination and synergy among diverse teams.

This structure allows for a more fluid flow of information, enabling teams to react more swiftly to changes in projects and shared objectives. As individuals from various departments work together, they are more likely to develop a broader understanding of the organization’s projects, leading to innovation and improved problem-solving capabilities.

While aspects like lower employee turnover or higher profit margins may be influenced by various factors within an organization, they are not inherent advantages of the matrix structure itself. Additionally, increased hierarchical management runs counter to the flexibility that a matrix structure aims to provide, as it often seeks to diminish strict hierarchical boundaries in favor of more collaborative engagement across levels and functions.