Complete the following sentence with the correct term. or how much they use machinery instead of people to Manufacturing businesses can be classified according to their technical complexity produce goods. Your great-great-grandmother left you her recipe book. It contains amazing, delicious cake recipes, and you are certain you can make a fortune with them if you just set up your bakery right. You are considering three possible designs for your bakery: Design 1 Design 2 Design 3 A factory in which assembly-line workers create low-cost, standardized cakes to be A factory in which all cakes are created by machines; technology will enable you to A personalized wedding cake business in which you will create custom delicacies for your clients sold in grocery stores shift from cake to cake as customer needs change According to Joan Woodward, Design 3 is classified as a small-batch production company. Small Batch Mass Production Continuous Process Technical Complexity of Production Technology Structural Characteristics: Low Medium High Centralization High Low Top administrator ratio Low Medium High Indirect/direct labor ratio 1/9 1/4 1/1 Supervisor span of control 23 48 Communication Written (vertical) Low High Low Verbal (horizontal) High Low High Overall structure Organic B Organic Source: Based on Joan Woodward. (1965). Industrial Relations: Theory and Practice. London: Oxford University Press. A. Low B. Mechanistic C. 15 According to the information in the table, which of the following conclusions is most likely to be true? O O A bakery that places an emphasis on teamwork will operate most effectively with a mass production design. Continuous process production designs are particularly effective when a bakery is operating in a stable environment. o Bakeries that want to compete on the basis of cost should choose a small-batch production design. A bakery using a continuous process production design will require small numbers of highly trained employees