Through observation you can monitor or watch a process or situation that your are evaluating as it occurs. ï·. When you are gathering data on individual. behaviors or interactions between people. Observation allows you to watch peoplesâ. behaviors and interactions directly, or watch for.the results of behaviors or interactions. When you need to know about a physical. setting.hen you are gathering data on individual. behaviors or interactions between people. Observation allows you to watch peoplesâ. behaviors and interactions directly, or watch for. the results of behaviors or interactions.