Misty L. Loughry and Henry

¶ … Misty L. Loughry and Henry L. Tosi in an attempt to bring some light to an issue that has not yet been subjected to sufficient study, the issue regarding the effects that peer monitoring has on organizational performance. The authors found that two main research questions deserve their attention and the attention of their readers: "What is peer monitoring?" And "Is peer monitoring associated with higher work-unit performance?"

Regarding the theoretical framework in which the article is developed, the authors connect the subject of peer monitoring with the agency theory (Loughry & Tosi, 2008). This theory suggests that peer monitoring can be observed in situations where individuals observe and respond to the behavior of their peers in accordance with performance results. Furthermore, the agency theory states that peer monitoring is manifested by setting certain standards, by observing the results of peers, and by applying penalties in the case of employees that do not meet the observer's standards, in order to influence the behavior of peers.

The study suggests four hypotheses: hypothesis 1 - peer monitoring will be positively related to work-unit performance; hypothesis 2 -- supervisory monitoring will moderate the relationship between peer monitoring and work-unit performance so that the positive effect of peer monitoring on work-unit performance will be stronger when supervisory monitoring is low than when supervisory monitoring is high; hypothesis 3 -- task interdependence will moderate the positive relationship between peer monitoring and work-unit performance so that the relationship will be stronger when task interdependence is high than when task interdependence is low; hypothesis 4 - work-unit cohesiveness will moderate the positive relationship between peer monitoring and work-unit performance so that the relationship will be stronger when cohesiveness is high than when it is low.

The research method applied in this study was divided by the authors into three phases. The first phase consisted in interviewing individuals in order to identify the behaviors addressed by peer monitoring for developing measuring items. The second phase consisted in administering potential items to students and analyzing the data in order to select the necessary items. The third phase consisted in collecting field survey data, and analyzing it in order to refine the peer monitoring measure and to test the hypotheses mentioned above.

Regarding the research site, the authors of the study chose a large U.S. theme park because such an organization is composed of several work units where performance can be measured and compared against the same criteria. The research sample was represented by employees that worked in operations -- 61%, food -- 20%, and merchandise -- 19%.

The characteristics of these work units include highly structured and observable work, the jobs require no special skills, the standards of appropriate behavior are acknowledged by all employees, rewards and punishments are standardized, employee evaluation takes places once a year, also, there are written guidelines for what is considered to be inappropriate behavior and its consequences.

The study takes into consideration some of the factors that influence group performance. Such factors include adequate skills, training, role clarity, rewards, punishments, and the control structure. Another important factor that should have been taken into consideration for this study is represented by communication, which plays a very important role in determining team performance (Hause & Woodroffe, 2001).

The study revealed that there are two types of peer monitoring: direct peer monitoring and indirect peer monitoring. There are both similarities and differences between the two types of monitoring. What is common to them is the fact that they both occur when individuals want their peers to improve their work efficiency. The difference between them is represented by how they are performed. For example, direct monitoring consists in directly observing the behavior and results of peers, praising or correcting them in accordance with the circumstances, reporting inappropriate behavior, and discussing other performance related subjects. This is very useful if included in a motivational system that can be used within the organization in case (Hultman, 2002). Indirect peer monitoring is based on gossip regarding the negative aspects, like poor performance, inappropriate behavior, and others. In such cases, the individuals observed by their peers may not be aware of this monitoring.

The effects of the two types of peer monitoring are slightly different. Direct peer monitoring has a positive influence on problem-free performance only when supervisory monitoring is low, otherwise it has no effect. The same thing happens when task interdependence is high.

Indirect peer monitoring did not produce any significant effects on problem-free performance. But high levels of cohesiveness and supervisory monitoring were observed to lead to an increased number of employee behavior problems.

The research questions raised by the study are useful for people working in the human resources business, people who want to expand their knowledge in the field. The results provided by the study do not suffice for developing strategies for example, but they constitute a good starting point for further study in this field.

In order to benefit from better results, the sample used in the research study must be representative, and it must be expanded to a larger number and to a larger geographical area (Goddard & Melville, 2001). These are some of the limitations of the study proposed by the two authors. Furthermore, case studies can be prepared in order to analyze specific situations (McNamara, 2010). This can proof useful in adding more importance to the findings of the study. Several specific research goals should be established before conducting the research (McNamara, 2010). The specificity of the results of the research will depend on the specificity of the established objectives.