There is no one single correct method to writing a literature review. Therefore, this resource is a guide only. Check with your supervisor/lecturer/school to ascertain whether there are any specific requirements for your literature review before proceeding.
A literature review is an examination of the research that has been conducted in a particular field of study. Hart (1998) defines it as:
Initially, you may read quite broadly on the topic to enrich your understanding of the field. This is useful for refining your topic and establishing the perspective that your research will take. For example, reading broadly may help you work out where there are gaps in the research, which may provide you with a niche for your research. It may also enable you to establish how your research extends or enhances the studies already done.
However, remember that the literature review needs to relate to and explain your research question. Although there may seem to be hundreds of sources of information that appear pertinent, once you have your question you will be able to refine and narrow down the scope of your reading.

Links
How to write a Ph D Thesis UNSW School of Physics
PhD: First thoughts to finished writingUniversity of Queensland.
Writing a Literature ReviewThe University of Canberra
Writing a literature review Study & Learning Centre, RMIT