Final answer:
A service shop is characterized by a high degree of labor intensity along with significant interaction and customization, providing personalized efforts to meet individual customer needs.
Step-by-step explanation:
A service shop is characterized by a high degree of labor intensity and a high degree of interaction and customization. This setup can be seen in personalized services where the individual needs of the customer are addressed directly by the service provider, and there is a significant amount of effort and personal attention involved. Contrasting this with the concept of "McDonaldization," there's a substantial difference in the employment environment and the nature of tasks. Routinized roles in McDonaldized industries do not allow for much interaction or customization due to highly prescribed tasks, resulting in a dehumanization of workers and discouragement of work ethic. In contrast, specialized services and economies of scale as seen in factories producing a large volume of products highlight the importance of efficiency and cost reduction, but do not necessarily align with the labor intensity and customization typical of a service shop.