My philosophy is that as long as you complete your designated tasks in a timely manner, then it is irrelevant how much time you spend screwing around. At my friend's old job, he did the work of 5 men in half the time. Suffice to say, he had unlimited smoke/"screw around on the web" breaks.
I honestly think that the whole pay-by-hour scheme is ridiculous and outdated. Take a grocery store cashier, for example. Suppose you're cashier A and cashier B is your annoying neighbor. Your line moves at 2 people per minute because you're so damn fast, yet cashier B's line moves at 1 person per 2 minutes because she's so damn slow and spends all the time talking. Can anyone please give me a logical reason as to why cashier B should be making the same as cashier A?
I just think that people should be paid according to their skill, qualifications, productivity, and speed - not a misleading number such as the amount of time they spend in a given place. I will even go so far as to say that this is the reason productivity is so low in so many industries: "Work fast? Why should I work fast if I'm ahead of schedule? Might as well take a breather and finish later... not like they're going to pay me more for finishing now."
Imagine the productivity of this country if employers switched to a "pay by Warik's criteria" scheme. Shit, worker productivity would increase by 1000% because people would get off their asses and think: "shit! unlike before, the more I work the more I get paid!!!!!!!!"
-Warik