The particular feature of linear optimization problems is that as long as the decision variables satisfy all the constraints, they can take any value. However, there are many situations in which it makes sense to restrict the solution space in a way that cannot be expressed using linear (in)equality constraints. For example, some numbers might need to be integers, such as the number of people to be assigned to a task. Another situation is when certain constraints need to hold only if another constraint holds. For example, the amount of power generated by a power plant must not be less than a certain minimum threshold only if that generator is turned on. Neither of these two examples can be expressed using only linear constraints, as we have seen up to this point. In these cases, it is often still possible to formulate the problem as an LO problem, although some additional restrictions may be needed on certain variables, requiring them to take integer values only. We will refer to this type of LO problem in which some variables are constrained to be integers as mixed-integer linear optimization (MILO) problems.

In this chapter we consider a variety of non-optimizing mental shortcuts that people use to make sense of the complex world around them. We consider mental models; narrow bracketing and broad bracketing; the diversification heuristic; and the difference between transaction utility and acquisition utility. We then consider mental accounting, whereby people form different mental categories for different sources of incomes/expenditures and money is not fungible across them. This explains diverse phenomena, for example, why people prepay for vacations and post-pay for consumer durables. We consider projection-bias, the tendency to project our current preferences in inferring our future tastes and actions. This is followed by a discussion of Herbert Simon’s aspiration adaptation theory, which gives a boundedly rational approach to decision making. It highlights the procedural aspects of decisions. The final topic in this chapter is behavioral finance. We give a statement of efficient markets hypothesis (EMH), which is the cornerstone of modern finance. We show that EMH is rejected by the evidence. We also give a brief note on corporate finance.

In neoclassical economics, choices reflect considered judgment, so one can use revealed preference arguments for welfare judgments. The evidence from behavioral economics calls this view into question. This chapter considers the proposed modifications to neoclassical welfare economics when people might not be the best judges of their actions. The generic form of paternalism in behavioral economics is soft paternalism that nudges the choices of boundedly rational individuals in a beneficial direction, but the choices of rational individuals are minimally affected. We consider several forms of soft paternalism: libertarian paternalism, asymmetric paternalism, and light paternalism. Our main focus is on libertarian paternalism, and we consider the evidence from several forms of nudges as well as the importance of distinguishing between partial and general equilibrium effects of any policy intervention. We consider the inevitability of the choice architect and the concept of informed consent. We critically evaluate the criticisms of this approach, for example, those by the contractarian approach. We consider applications to sin goods and to the foundations of behavioral public economics.

Leading Organizational Change highlights how a volatile, uncertain, complex, and ambiguous (VUCA) environment challenges preexisting mindsets and moves companies into the “Age of Agile.” Change scenarios that companies face depending on their current performance are described: anticipatory, reactive, and crisis. The change process (assessing the readiness for change, initiating and adopting the change, and reinforcement and realignment) explains how the process of change unfolds, facilitated by a design thinking approach. The dilemma of excessive persistence versus premature abandonment is discussed, suggesting that the trade-offs of staying on or leaving a course of action must be carefully considered. IBM’s change trajectory, which fundamentally altered the company, is described.

Global Leaders in the 21st Century examines the current context of international management and looks at the noteworthy changes in the business and leadership contexts of globalization. A major shift appears to be taking place in the global political economy. The predominant system characterized by global economic agreements, free trade, global supply chains, and multilateral institutions is being challenged by an increase in the primacy of national interests and security. In this volatile, uncertain, complex, and ambiguous (VUCA) environment, traditional ways of managing are not entirely adequate, and global leaders need to develop new skills. This chapter introduces the concept of Mindful Global Leadership and its components of context sensitivity, perspective taking, and a process orientation. It also presents a global leadership typology-based task complexity and relationship complexity.

Russia’s invasion of Ukraine in February 2022 sent shock waves though the world’s wheat market. The world price of wheat jumped from about $8 per ton to more than $13 per ton within a few days. The markets feared that wheat supplies from the region – which account for a third of the world’s wheat harvest – would be disrupted.

Toward Sustainability and Responsible Organizations addresses the purpose of business and social and environmental sustainability in the complex context of working across boundaries. State capitalism, shareholder capitalism, and stakeholder capitalism are compared. The chronological development of the concepts of sustainability and corporate responsibility is presented. Major corporate sustainability frameworks are identified. The United Nations’ 17 SDG’s, the Global Reporting Initiative, and the sustainable value framework are discussed. The relationship between ESG and financial performance is addressed. Involving and communicating with internal and external stakeholders are important aspects of navigating paradoxes associated with sustainable transformation. The common stakeholder–shareholder paradoxical tension that exists in sustainability management is discussed with an example.

In this chapter, we discuss the causes of the eurozone crisis, by first recounting the lead up to monetary union. In the subsequent section, the economic arguments for and against are explained. Next, we detail the onset of the crisis in banking, government debt, and growth, and the implications of the immediate policy response. The final section explains how the recovery to date has been incomplete.

In this chapter, we discuss the causes of the eurozone crisis, by first recounting the lead up to monetary union. In the subsequent section, the economic arguments for and against are explained. Next, we detail the onset of the crisis in banking, government debt, and growth, and the implications of the immediate policy response. The final section explains how the recovery to date has been incomplete.

This chapter will focus on one type of ‘alternative education’ that has been specifically designed for students who have been disengaged from schooling. As disengagement is the breakdown of the relationship between the student and education, a reengagement program’s job is to provide a context where that relationship can be rebuilt. It provides an opportunity to rethink the pedagogical and structural way we ‘do’ school and challenges us to think that perhaps there may be other ways to include the needs and views of students, as well as the support of the wider community.

There are over 400 schools and programs for disengaged students around Australia, providing education for at least 70 000 young people. This might be the type of teaching that you are interested in, where engagement itself is the main purpose. Working in reengagement programs provides an array of challenges but can present enormous rewards for the young people who get a second chance at education and for the staff who can see that they can make a life-changing difference.

It is difficult to believe that, not long ago, school bullying was a rite of passage. Little was known about the negative impact bullying had on individuals and communities before the late 1970s. Targets of bullying and their carers suffered mostly in silence. Thankfully, we have come a long way in our understanding of bullying. This chapter will focus on a deep conceptual understanding of bullying. It will include learning to differentiate the several types of bullying and their manifestations. This understanding will help you apply the techniques suggested for enhancing students’ engagement discussed throughout this book to recognise, prevent and manage bullying in your school and classroom.