'Load balancing' achieves optimized performance and reliability in network management by distributing workloads across multiple servers or resources. This process ensures that no single server becomes overwhelmed, which can lead to slowdowns or failures. By evenly distributing incoming network traffic, load balancing enhances the availability of applications and services, thus improving user experience. Furthermore, it aids in scaling resources effectively, responsible for accommodating varying levels of access or data processing demands. Load balancing is crucial in reducing downtime and increasing fault tolerance, allowing for smooth and uninterrupted service delivery in dynamic environments.