When it comes to managing the performance of your employees, as a leader you need to understand your individual employees’ work styles as well as how they like to be recognised.
Properly conducted, performance reviews indicate your professionalism as a leader, appreciation of contribution and desire to see employees improve and grow within the company.
If a team member approaches you wanting a promotion, you need to consider if they're looking for a promotion, or new job entirely – one that may in fact only exist beyond the company walls.

Managing Performance