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Directly, I'm telling him/her please I have to work so we can continue our conversation later.
Regardless his/her reply.
You do know that it absolutely depends on the person wasting your time.
A colleague or a friend: simply –and politely- let them know that you are busy. Use lines like: “Can we continue this later” or to be nicer you can actually specify a time “can we continue this on ….” An old trick to use is to walk while talking, if you are in your office, get up and start walking towards the door, if you are somewhere else, just walk to a place where you know that eventually you will have to part with that person… but be careful of turning the walk into a stroll.
If that person is someone you have to be careful with (a manager or a client), then you need to show very strong interest in whatever they are saying, and then start leading the conversation yourself so you would be able to close it. You will have to deal with the “ands” and “buts” that usually keep the conversation going, and the way to do that is by answering with1 or2 words sentences, things like “right, sure, absolutely, I will look into it, etc…”
Yes we must tell them directly in polite way that we have too much work and we can't waste our time.
For me I tell them directly that i can't talk to them for too long that i have important things to do. You can tell them without being rude.
It depends to the situation, I have the experience that the Managing Director wants to get rid of some one ( Like a Client's representive - creditor , etc ) who is wasting the time of M.D. and yet wants not to bother that person. in these cases I will take time with them. but with my colleuges politely I ask them to continue at aunch time !!!!