How to handle work site Discipline when employees are playing game and wasting their time?

I have recently joined an IT company consisting of 15 people. How to handle worksite Discipline when employees are playing game and wasting their time and when asked about the same replied that it is part of their duty which actually is not. How to handle it??
2. While recruiting I face the problem of employee strength. People directly say no for applying when they know employee strength. Though very well established company with good HR policies also. But I am unable to generate the interest of the candidates. Plz comment. Thanx in advance.

Hi,
1. you have to frame a policy regarding the desciplinary action to control the same, before framing discuss with the General Manager or MD to make this strong and active
2. Regarding recruitment:- it will be based on candidate mind you have to make them to understand that they will be the pillars for the company in future.