According to the Observer Effect, what happens when an employee is monitored?

The Observer Effect refers to a phenomenon where the act of monitoring or observing individuals leads to changes in their behavior. When employees know they are being watched, it can create feelings of anxiety or nervousness, which may negatively impact their performance and productivity. This response is tied to the psychological aspects of being observed, as the pressure of needing to perform well under scrutiny can lead to increased stress.

Furthermore, while monitoring could intuitively seem like it would lead to better performance (as might be suggested in other options), the stress and distraction caused by the awareness of being monitored can often outweigh any potential benefits in productivity. This creates a situation where the initial intention behind monitoring—improving output—backfires, resulting in decreased effectiveness. Hence, it's understandable that an employee might not operate at their full capacity while under the pressure of observation.