Just as assessment is an ongoing process, observation should be as well. Watching one's students on a daily basis should be the best guide for what's next to come. For example, if one student in the back seems to finish work early and disturb others, maybe he or she needs to be challenged more (the observation). Therefore, you, as the teacher, as that student to assist a struggling student in the classroom (the response). I observe my PDS teacher responding a lot by childrens' ability levels. They are grouped by ability when it comes to stations and she judges her planning and teaching around what their current needs are.
Responsive teaching isn't limited to behavior problems, though. Responsive teachers tend to teach with a learner- or student-centered approach rather than a cut and dry direct scheduled instruction. Students needs are rarely consistent; they may vary by day or by content area being taught. The teacher willing to go the extra mile and respond to whatever that need may be will most likely make the biggest impression. Honestly, it's a quality we should all desire to possess by the time we are in classrooms of our own.