Impact Of Cultural Factors on Indian Insurance Organizations: An Empirical Study

Abstract

Cultural taboos and beliefs can negatively influence the adoption of insurance. This study examines cultural variances from a demographic perspective among employees of various insurance organizations in Haryana, India. Wallach's OCI Model (1983), which identifies three organizational culture types—Innovative, Supportive, and Bureaucratic—was utilized to assess the prevalent culture in these organizations. A sample of 235 on-roll employees was drawn from the top four insurance organizations in the state, determined using Morgan’s sample size calculation technique. Data analysis, conducted through SPSS 16 software, employed statistical methods including Levene’s test, T-test, and ANOVA. The findings reveal significant variations in employee perspectives across cultural types based on demographics such as nature of employment, gender, designation, and educational qualifications. These differences highlight the influence of demographic factors on employees’ perceptions of suitable cultural types, which, in turn, affect their work attitudes and performance. The study underscores visible cultural disparities within Haryana's insurance sector and their impact on organizational outcomes. To address these disparities, authorities should focus on fostering a more democratic, supportive, and trustworthy organizational culture. Such efforts can improve employee attitudes and performance while attracting skilled youth to join and contribute to the growth of Haryana’s insurance industry.