When co-workers chew the fat at the water cooler, does it make for a more productive workplace? Many employees think it does--but managers aren't as likely to agree--according to a new survey by OfficeTeam.

When 539 employees and 150 executives were asked about their views on the impact office water cooler chatter has on productivity, 40 percent of employees responded that it "Increases productivity by encouraging workers to bond with each other." However, only 21 percent of executives agreed.

At the other end of the spectrum, 34 percent of executives felt that water cooler chatter "Decreases productivity due to time wasted" and 26 percent of employees agreed. Thirty percent of employees and 41 percent of managers believed the chatter had "no effect" on productivity.

" Informal discussions at the water cooler or in the lunchroom can often lead to new ideas, stronger work relationships and improved team camaraderie, which, in turn, can increase productivity," said Diane Domeyer, executive director of OfficeTeam.

"Conversations should not interfere with work that needs to be done," Domeyer cautioned. "If talks steer away from business issues and continue for extended periods of time, it's distracting to others. In these cases, the dialogue should be continued after office hours."