He may need more guidance to distinquish professional and social boundaries. He sounds needy for attention and thinks its okay to be a gabby worker.

I'd suggest you maintain a very professional demenor for a few days. Reintroduce casual conversations in the mix gradually to model for him a proper work ethic.

I've wanted to ask if you are working with experienced employees or is this a first job for this guy or any of the others.

Building teams with difficult people is the ultimate challenge. If you can pull it off it you will have acquired a highly marketable skill for your own resume.

A good book off the top of my head..... "Getting to Yes"... can't think of the authors name but its a very popular management book. Been around for a long time so might even pick it up in a used book store.

If you like reading and you are interested in leadership.... here are a couple of others that are my all time favourites.... both by Max Dupree entitled "The Art of Leadership" or "Leadership is an Art" forget which way it goes..... and the second book.... "Leadership Jazz". Great books.

Good luck. You do have your hands full. But he did give you a good clue. Structure and consistancy. Be the boss not a friend. Set the pace and model the ethic. Hope for the best.

Take care.....