Earlier quoted context omitted.
You left out a plausible (and common) option: a more expensive pastry chef can make pastries that sell better. This is what's in play when you see a line out the door at some shop. The prices may not be that much more expensive, but the quality is that much better.
I can imagine an expensive chef to setup processes that allows cheaper personnel to keep producing quality party. Slowly that process will suffer from time rot (eg: different floor that requires a diff cooking, but cheaper labour can't figure it out), also innovation will suffer. I see the exact same thing in dev envs, and even more so in ops/sysadmin. Cheaper unskilled labour going through old fashion processes with…
I'm not so sure. I think its binary.
I think there's always a touch, a qwan, assumed knowledge, skill & craft, or something that's not captured in the SOP.
The master baker in the shop next door made the most delicious brioches. Left to start her own catering company. Whereas her trained replacements, using the same recipe, ingredients, and gear, just made adequate dinner rolls.
I spent years perfecting my sunday morning pancakes. Big and fluffy. While best ingredients help, there's still a touch to make them just right. I can't even delegate flipping the pancakes to untrained family members.
I've seen this with other trades too.
You and me, we're too close to our work (tech) to fully understand the value add we bring to our work. But you miss it when it's gone.
Maybe this is why the master / apprentice setup seems to work well for knowledge transfer.