I am very close with my employees. Culture is important at our company, and I made sure that anyone we hire feels like they can be themselves at work and not feel like they have to conform to set rules.
Obviously as long as they aren't being a dick or deliberately hurting other members of the team in the process, I let people work from home a few days a week then we have a team meeting in person on fridays to sort of recap the progress on projects and shoot the shit together. I usually get beers and takeout food in for that.
People do their best work when they actually are valued, and don't feel like work is a place they have to go to make money (if you know what I mean).. I made a big effort to hire people with clear integrity so I didn't feel nervous about productivity if they work from home most of the week and after a couple bad hires we weeded out and got a good system in place.
I play the odd game with a few of our developers when I have time outside of work, have ever been baby sitter for one of our team on a few occasions. Shes a single parent and works more than anyone weve ever had and constantly asks for over time and what not.. I increased her sallary and cut her work days down to 4 days a week so she could have more time and money for her 3 kids. Low and behold, her productivity remains excellent and shes super happy at work. That is the 'boss' I want to be.