Eliminating dead time is definitely part of it. However if a thinking based worker doesn't feel like working, it doesn't matter if they're sitting at an office.

Eliminating dead time is definitely part of it. However if a thinking based worker doesn't feel like working, it doesn't matter if they're sitting at an office. There's no way to verify whether they're thinking about a work related problem or thinking about their vacation plans. On top of that, in a lot of cases people can get away even with just blatant non-working like reading Hacker News on their work computer. Thus it's always about trust anyway. It doesn't matter much where the worker physically is. Additionally, it's results not methods that should be managed. You want to set goals for your workers and see how they progress. Whether they achieve those goals sitting at an office or by outsouring their work to their little nephew while playing video games, it shouldn't really matter. Ultimately what matters is if the goals are achieved, as that's why you're paying the person -- not because you want them to physically be doing some specific activity.