Good question. I just refreshed my memory on this with Kermit and basically the way that this works is the following.
The work status notifications go to the owner and/or manager of the entity in the intersection of data being locked. Who the owner and manager is for an entity is driven by the actual master data for the Entity dimension. In the entity dimension there is a property which drives the owner and manager for a given entity. There is pretty good documentation with an example going into details on this within the SAP help site:
The email is derived from the owner or manager (which is a user). The user has its email maintained in the web admin which is referenced prior to the notification or email being sent.
As an FYI this WILL NOT work unless the SAP NetWeaver BW server has the SMTP server setup. This would typically need to be done by the SAP Basis team prior to it working successfully.
Hopefully this makes sense.