Christmas elves are small, pointy-eared people who work for Santa Claus, not only making toys but also monitoring everyone in the world to keep tabs on their naughty-nice status. They seem to have an overly playful and goofy nature that makes it difficult for them to perform serious tasks properly. They all also have names at least roughly in the lines of "[one syllable]-y-[one letter]oh-[one letter]oh", eg. Squeakybobo, Slappyhoho.
See also elf in general.