Definitely being on time and taking the initiative to start a new day on the job with a great attitude has the making of a good employee. My biggest pet peeve are employees who are noticeably less productive than the rest of the team. This type of employee is for sure on the naughty list.
Every manager knows about the list and may be familiar with the talents and skills of the employees on the list. Watching out for the careers of the employees on the list is a serious organizational commitment.