From Oracle.com [PDF link]:
The PeopleSoft Events and Notifications framework provides three features that can be configured and used to monitor business processes and create messages when unusual situations or errors occur within a PeopleSoft process or table. These messages can be routed to different users (PeopleSoft or non-PeopleSoft) to prompt the user to resolve the issue. Links can take the user directly to the page for correction or resolution. The three features are:
Key feature: users can use the Peoplesoft Notification framework which allows them to send notification emails based on certain business- and workflows. Be sure to pay attention to the definitions of events, notifications and alerts, though: enterprise vendors seem to be fuzzy around the edges with these things. Never assume your working definition is the one being applied to a new technology.
(Personal experience speaking here? You betcha.)
You can download the entire PDF here.
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