I previously worked in a very macho male dominated industry where there was plenty of off-colour "banter" but which I never found offensive because it was generally good natured and actually quite funny. However, the men knew they were never ever to touch me! Some people are just more touchy than others and that's fine but some people (me) don't like it and once they knew that, they didn't.
I now work in a much more female orientated world and find that people are very easily offended by jokes (not me I'm not at all funny and rarely try ) but want to hug me. All.the.time. They can't say thank you without hugging you.
I wouldn't want to see hugs banned, some people obviously like it but equally, I think a few jokes have a useful place for relieving tension in the workplace, obviously provided people are aware of and sensitive to the people around them.
Do you think it's possible to find a happy medium for either of these situations?