What best describes the management concept of 'economy'?

The concept of 'economy' in management primarily revolves around the efficient use of resources to minimize costs while maintaining the necessary level of output and quality. Reducing unnecessary costs means identifying and eliminating expenses that do not contribute value to the organization’s goals. This approach can help organizations allocate their resources more effectively, ensuring that funds are used for activities that create the most benefit.

In contrast, maximizing expenses is counterproductive, as it can lead to waste and inefficiency. Enhancing employee satisfaction, while important, is more aligned with concepts of organizational culture and human resource management rather than economy. Diminishing productivity is also detrimental, as it implies a decrease in output or efficiency, which goes against the principles of economic management. Thus, reducing unnecessary costs is the best description of the management concept of 'economy.'