Earlier quoted context omitted.
It's a case of misplaced metrics. I can't find the name of the paper or the researcher, but I believe it's been shown that when you try to reward/punish some metric of productivity, invariably the employees will begin to maximize that metric, perhaps at the expense of productivity. Measuring number of hours in the office is not a direct measurement of productivity, and these employees were meeting the metric, but onl…
I believe it's known as Campbell's Law: http://en.wikipedia.org/wiki/Campbell%27s_Law
I wonder if Goodhart's law is more apt.