This study investigated how educators experience the peer observation component of the Integrated Quality Management System (IQMS), a quality and performance management system that was introduced into South African schools in 2005. The extent to which the Integrated Quality Management System has contributed to the development of schools in their entirety has been largely unchartered. The objective of this dissertation was to investigate the perceived experiences of educators concerning the peer observation component of the Integrated Quality Management System. A qualitative research paradigm was employed in order to gather data for this study. Semi- structured interviews were conducted with educators; data collected from the interviews was compared and integrated with data collected from the documentsthat were studied. The data gathered was analyzed using the theory of collegiality in order to explore how educators experience peer observation as a component of the IQMS during its implementationas well as what impact it had on collegiality The findings revealed that teachers are given an opportunity to select their peers during peer observation implementation which, however, leads to an inconsistent and subjective allocation and rating of scores in order to get a 1% pay progression. The study found that the peer observation part of the IQMS is an effective tool for teachers‟ development as it helps them identify areas that need to be developed in order to improve on their teaching practice. The study‟s findings also revealed that if favourable conditions for peer observation are created, peer observation enhances collegiality among teachers.