Distributed structure requires more control.
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We never use webcameras or other similar tools to control that employee is actually working. We think that we can always know that by assessing the results of employee’s work.
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We require result to be shown frequently – usually once 1-3 days. If there is no result committed to GIT or SVN for more then 3 days – the task is considered as high-risk and leader communicates to developer.
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We require employee to be available during agreed schedule. This does not necessarily means that employee should be online in some instant messaging network, but it means that employee should be responsive during this schedule.
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Usually we accept flexible working hours for our employees.
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We track number of hours spent per week and effectiveness (subjective). It is ok if employee prompts that his resource will be 50% lower for nearest month, but it is not ok if resource goes low without prompt.