1.0 Introduction1.1 Mergers and Acquisitions Often, company consolidation occurs when two companies within an industry merge. This means that a less dominant company is absorbed by a company that is more dominant. In other words, the more dominant society maintains its identity while the other society has to abandon its identity. Merger is the bringing together of two companies to form a new company, while acquisition is the purchase of a company and not the creation of a new company. scope of a company in order to improve its financial performance. Companies practice 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 Benefits 2.1 Cost Efficiency The most significant benefit for companies when coming together through mergers and acquisitions is cost efficiency. This is because two companies forming a new company have greater purchasing power to reach a larger market. Indeed, after the merger and acquisition, the shareholder value for the newly formed company will be greater than the sum of the shareholder values ​​of a single company. Therefore, the company benefits from cost reduction as production volume increases, which results in a reduction in production cost per unit. This will ultimately improve economic scale up by producing a product with lower cost and better way. Beyond that, mergers and acquisitions lead to business expansion that contributes to the organic growth of a company as a single company… middle of paper… oyees finds work. The human resources department should spread positive thinking to all employees by instilling confidence that these short-term changes will ultimately bring benefits in the future. Also, stay in touch with laid-off employees because they may be rehired after business improves. Next, make an effort to resolve their concerns and empathize with them. 5.0 Conclusion The human resources department is the hub for determining the success of a company. The success of a company derives from the contribution of employees in anticipating, adapting and responding to management change. The human resources department that can handle human interaction issues such as culture change, morale, and employee relations well will ultimately increase the potential success of the company. Last but not least, business goals can be easily achieved by maintaining proper communication involving all employees.