Manager takes note and formally documents team and personal performance after a finite project, process or time period.
Verbally praising or remediating performance is not enough for concrete future improvement or confirmation. The obvious consequences of failing to record poor behavior or work can translate to future failure and increasing headaches. But failing to double down on good behavior can also have a net disadvantage.
Team members need feed back to function with awareness and holistic attention to their larger impact with their input. As business or the project continues, update a registry of both positive and negative performance traits. If time and effectiveness allows, forwarding it to the team member in writing before the lead time ends can have an immediate impact. However, waiting until the end will give you a wider perspective and let the team finish without interruption.