Final answer:
The psychological contract breach is associated with unmet expectations between employers and employees, which can result from downsizing or restructuring, but is not typically due to hiring too many newcomers at once.
Step-by-step explanation:
The concept of the psychological contract refers to the unwritten set of expectations between employers and employees. A psychological contract breach can occur for several reasons such as organizational changes like downsizing and restructuring, which may involve significant layoffs, or through the promise of more than what an organization can deliver, as sometimes occurs during recruitment. However, a psychological contract breach generally does not occur from hiring too many newcomers at the same time; rather it is related to how these changes are managed in terms of communication, support, and adaptation to new roles.
Industrial-organizational psychologists pay close attention to how downsizing events are communicated and managed within organizations to minimize negative impacts on psychological contracts. Such measures are crucial for securing job satisfaction and organizational commitment, thus ensuring the wellbeing of retained employees and the overall health of the organization.