Thanks Ryan.
Finally able to run the cascading oozie job with intended number of reducers. But the problem is that I can't customize any hadoop properties from Oozie workflow.
In non restricted Hadoop environment you will not have any issues while running cascading job from shell.
What if it is a secured/restrictive environment?
User running the job (lets say user1), who will be given write access to only his/her home dir(/user/user1) and temp(/tmp/hadoop-user1) directory. But without setting the hadoop.tmp.dir from your ooize config property it will always try to use /tmp/hadoop-yarn folder and fail with access permissions, as the actual user runs the job is yarn.
From the link that Ryan shared in previous thread, oozie sharedlib is the solution. In which you will have all hadoop config available to oozie, but global to all oozie workflows. Still you will have the issue if you want to customize any config.
Thanks
Dilip