Effects of cognitive biases and heuristics on mining equipment selection on platinum mines in Rustenburg, South Africa
Date
2023
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
University of the Witwatersrand, Johannesburg
Abstract
The purpose of this study is to investigate the effects of cognitive bias and heuristics on mining equipment selection, on platinum mines in Rustenburg South Africa. Shaft Engineers, Procurement Manger and Engineering Managers from Rustenburg platinum mines were the participants in the study.
A total number of eight interviews were conducted on five mines around Rustenburg. The exploratory design and qualitative approach were used in the
study. Interpretive phenomenological and semi-structured interviews approach were used. Open ended question were asked, these kinds of questions allowed the participants to engage and participate effectively. The information was analysed using a thematic approach. Heuristics and bias across life span of a decision maker, have influence in the decision-making ability of the decision maker. Engineering Managers and Shaft Engineers are not immune from cognitive bias, heuristics, and their effects during mining equipment selection. Managers must be rational when selecting mining equipment, but the research indicate that under limited time and lack of information, managers turn to cognitive biasness and heuristics (“Mind shot cut”) during decision making.
The study shows that the participants with more experience used fewer heuristics than those with less, especially when the stakes were high. These support that the decision maker who have high cognitive level (Knowledge) use their intuitive “gutfeel” to take a calculated risk. The "bounded rationality" of decision-makers has been acknowledged by decision theories, as having cognitive constraints. People tend to attribute meaning to changes based on their own set of beliefs, perspectives, and conceptions
Description
A research report submitted in partial fulfillment of the requirements for the degree of Master of Business Administration to the Faculty of Commerce, Law and Management, Wits Business School, University of the Witwatersrand, Johannesburg, 2023
Keywords
Cognitive bias, Shaft Engineers, Mining, Platinum mines, Rustenburg, UCTD
Citation
Ramaphakela, Thabo. (2023).Effects of cognitive biases and heuristics on mining equipment selection on platinum mines in Rustenburg, South Africa[Master’s dissertation, University of the Witwatersrand, Johannesburg]. WireDSpace.https://hdl.handle.net/10539/40703