1.0 Introduction1.1 Merger and Acquisition Often, company consolidation occurs when two companies in the same industry come together. This means that a less dominant company is absorbed by a more dominant company. In other words, the more dominant society retains its identity while the other society must abandon its own identity. Merger involves combining two companies to form a new company, while acquisition involves purchasing a company and does not create a new company. 1.2 Downsizing As noted by Robbins and Pearce (1992), downsizing is a reasonable option for the strategic growth of a business by reducing the scale and scope of a business in order to improve its financial performance . The company's practices involve shedding less productive staff in order to reduce operating costs and improve efficiency. By doing so, the company will be more profitable and efficient.2.0 Advantages2.1 ProfitabilityThe most important advantage for a company when brought together through merger and acquisition is profitability. This is due to two companies forming a new company and having higher purchasing power to reach a larger market. In fact, after the merger and acquisition, the shareholder value of the newly established company will be greater than the sum of the shareholder values ​​of a single company. Therefore, the company benefits from reduced costs as production volume increases, resulting in a reduction in production cost per unit. This ultimately improves the economy of scale by producing a product more cheaply and more efficiently. Apart from this, mergers and acquisitions lead to business expansion which contributes to organic growth for a company as a single company ... middle of paper ...... employees find employment. The HR department should spread positive thinking to all employees by giving them confidence that these short-term changes will ultimately be beneficial in the future. Additionally, stay in touch with laid-off employees as they may be rehired once business improves. Then, make efforts to resolve their concerns and empathize with them. 5.0 Conclusion The human resource department is at the heart of determining the success of a business. A company's success comes from the contributions of employees who anticipate, adapt and respond to change in direction. An HR department that can successfully handle human interaction issues such as culture change, morale, and employee relations will ultimately improve the company's potential success. Last but not least, company goals can be easily achieved by maintaining proper communication involving all employees..