Hi Geetha,
I read the whole thread and what I can understand is that though they have work, they still continue doing gossip. And I am sure some how these cracks are able to complete their work and meet the targets.
I previously worked in a company of size 115, I too faced a similar problem there. To be frank, stopping employees from doing gossip is quite difficult. You will have different mindsets and hence different perceptions. Some might listen to your words, some might not.
Do the following and find out how it works:
1. Find out how supportive the PMs are to this group.
2. Find out to which category these employees fall in : Stars, Prospective Stars, Avg performers, or FIREWOODS. And find out how far there absence will affect the organization / business.
3. If this group comprises of TLs too then I guess you need to play some mind game in creating a difference between TLs first. Once they get separated, automatically you will that their respective team will also show some difference.
4. Take frequent rounds during the shift hours and make sure your body langauage speaks more. I used to do this often. I used to just stand for 5 mins and watch everyone. I used to just enter in to the production floor without anyone noticing me. Trust me, those who waste their and others time, will not even be able to look into your eyes. And they wil get a msg that MGMT is noticing them.
5. During Appraisal keep a check on all this too.
And of course as you mentioned tat MGMT is also not so supportive, you will have to play your own mind games. Hope my points will give you some idea to tackle with your problem.
Regards,
P Umesh