founder of naked leader
Action For The Week
BE flexible with your people (your number one asset) on working hours and ensure they can work at home as easily as at work (they will put in the hours at home if you trust them). And ensure people have time to chat during the day, and allow them to surf the net within the obvious general guidance.
(Extract from The Naked Coach)

Chatting during the day was always something that went on a lot in the office I used to work with.
It was one of the reasons I left!
You have to let staff have a moment or two of relaxation otherwise it can de detrimental to performance.
Let them do that and you will receive the rewards in their work.
Some people take exception to others chatting. It can lead to mutiny in some cases. And the whole ‘nipping out for a fag’ thing is another issue altogether.
I work at home and often chat to myself. Far better conversation at times and I don’t have to fear a colleague pulling me up for not pulling my weight!