The Impact and Challenges of Transformational and Transactional Leadership on SMEs of the Banking Sector in the UK during the Covid-19 Pandemic Period

This literature review analyzes the impact and challenges of transformational and transactional leadership on SMEs of the banking sector in the UK during the Covid-19 pandemic period. It examines the relevant issues and challenges of leadership styles and evaluates the leadership strategies that could be used by Jyske Bank to respond to the changes within the Covid period.

Literature review
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Table of Contents
Table of Contents.............................................................................................................................2
INTRODUCTION...........................................................................................................................1
The rationale of the Research..........................................................................................................2
AIMS AND OBJECTIVES OF RESEARCH.................................................................................3
Aim of Research..............................................................................................................................3
Research objectives.........................................................................................................................3
Research Question...........................................................................................................................4
CHAPTER 2....................................................................................................................................4
LITERATURE REVIEW............................................................................................................4
CHAPTER 3..................................................................................................................................10
CONCLUSION..............................................................................................................................10
REFERENCE................................................................................................................................12
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Topic: The impact and Challenges of transformational and transactional leadership on SME's of
the Banking sector in the UK during the Covid 19 pandemic period
CHAPTER 1
INTRODUCTION
Leadership is the continuous process of influencing group of individuals who get ready to
work continuously by accepting challenges. To become a good leader there is need to have good
understanding and skills which could be used to take collectively and managing the all functions.
The leadership influences a group of individuals with shared purpose as it helps to manage the all
functions and activities. A leaders helps employees and themselves to do right things by guiding
them properly and get work done effectively. In other words, leadership is the ability to inspire
and influence a team for the purpose of achieving a certain goals, This is important for each
individual to analysis the business environment and comes to know how their employees will be
motivated so that kind of services are provided to staff. This is important for each organization
to have good leader and management as they understand the goals and given their contribution to
accomplish the business goals. Leadership is the regular process of influencing the number of
3

people and develop the organizational performance. The types of leadership are transformational,
and transaction that are used by business organization for the purpose of operating their business
in changing environment as it helps to accept the changes at the workplace and supports to
increase the business profits. The term "transformational leadership" refers to a leadership style
that affects people and societal structures. It promotes meaningful and good transformation in
teammates in its optimum context, aiming to grow followers into leaders (Klein and Todesco,
2021). Whereas, Transactional leadership is a leadership style wherein leaders use both
incentives and penalties to encourage subordinates to comply. Transactional leaders may
maintain followers engaged in the immediate term by using incentives and penalties structure.
Transactional leadership involves setting goals, rewarding goals to achieve goals and punishing
goals that are not achieved (Mendy and Harrison, 2021). Today, the business management style
is the new business model for small and medium-sized businesses. Understanding aspects of this
performance and the Transactional leadership concept can provide essential insights into
integrating critical areas of management and leadership (Adam and Alarifi, 2021).
The business environment is changing day by day where it became important to introduce
the kind of products and services which supports to operate a business effectively. In addition,
many small and medium-sized companies do not have access to group certificates and insurance
offered by insurance companies to large institutions when it comes to the insurance sector. Due
to the relatively high cost of services for small companies, the allocation of insurance funds to
small and medium-sized companies is one of the most important factors (Klein and Todesco,
2021). New technologies are already being used to develop business models for small and
medium-sized enterprises, and COVID-19 has changed the way companies now view small and
medium-sized enterprises. To understand about leadership and impact of covid-19 on business
on banking finance sector Jyske Bank has been selected that is small and medium size bank in
UK, offering different types of loan, payment, and banking services to their organization. The
leader of such organization plays an important role as they introduces the new technology and
innovation while pandemic that supported to operate their business and increase the productivity
effectively. Harrison (2021) stated that the banking sectors faced significant challenges during
the coronavirus outbreak, like payment delays and communication problems. Within covid-19
period it became challenging for organization to operate their business in changing environment
as government declared the lockdown where all businesses have been closed and no one is
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allowed to visit the other places. All businesses have faced the challenge of lower productivity
and profitability where leaders have controlled the business activities and functions.
In addition, this research will have two sections: the first section of the study discusses
the introduction of the research which includes the research background, research aims,
objectives, research question and rationale of the research. The second section of the research
discuss the literature review of the research which will examine in relation to the research
objectives and research questions.
The rationale of the Research
Leadership plays an important role in stimulating innovation and improving the productivity
of SMEs in Banking. An important concept of management style is the concept of Burns (1978),
which divides management into two types: transformational and transactional. In addition, this
research will analyse the challenges of different leadership styles and the performance of SMEs
in the banking sectors. One commonly cited argument is that small and medium enterprises of
Banking Sector are sensitive to the economic disruptions which are unique to businesses due to
its substantial economic limitations and the significant cost of complying with state rules. This
viewpoint argues that SMEs needs assistance not to provide them an unfair edge over larger
businesses, rather to compensate for the disadvantages they face as a result of its small
dimensions and to counteract the negative consequences of many other government regulations.
This is important research related to the current development debate in the private sector on the
importance of creating a favorable business environment for the SMEs of the banking sector
(Atiku and Randa, 2021).
As current research is about leadership which is followed by organization for the purpose
of influencing number of employees at the workplace and get works done effectively. It has seen
that small and medium size enterprises are main drivers in economic development as it provides
the job opportunities to individuals who have good knowledge about market and business
industries as it helps to know how each function and activity will go to perform well by
managing all functions and activities. Each organization needs to bring changes, innovation, and
new technology as it influences the number of people and get ready to work continuously. This is
important for each organization to understand what employees wants and how they could be
influenced to work. The leader is having major role as it conduct analysis and states how each
function and activity will be perform to manage all function and supports to develop the
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organizational productivity. Moreover, effective leadership can help improve the performance of
an organisation as SMEs face many new problems and challenges. The current research will help
researcher to improve their personal and professional knowledge which supports to accomplish
the business goals effectively.
AIMS AND OBJECTIVES OF RESEARCH
Aim of Research
This research examines how transformational and transactional leadership traits have
affected the SMEs in the finance industry during Covid-19 in the UK. A case study of Jyske
Bank.
Research objectives
 To explore the relevant issues and challenges of transformational and transactional that
states how leaders responded to the impact of Covid-19.
 To analyse how transformational and transactional leadership overcome challenges
caused by Covid-19 for Jyske Bank in the UK.
 To evaluate the leadership strategies could be used by Jyske Bank to respond the changes
within Covid period.
Research Question
 What are the challenges of Transformational and Transactional leadership that states how
leaders responded to the impact of Covid?
 How did transformational and transactional leadership help overcome Baking challenges
in the course of the Covid-19 pandemic?
 What are the leadership strategies could be used by Jyske Bank to respond the changes
within Covid period?
CHAPTER 2
LITERATURE REVIEW
To explore the relevant issues and challenges of transformational and transactional that states
how leaders responded to the impact of Covid-19.
As per view point of (Nurunnabi, 2020), Leadership is the main function in business
organization as it understands the needs of their employees and provide the right suggestions
6

which can help to accomplish business goals. This is important for each organization to analysis
the market and comes to know how each function and activity needs to perform in changing
environment. The word leader is wider to understand as it mainly uses to influence the number of
people in changing environment and maintain the higher performance. Leadership is the art of
motivating a group of people to act towards achieving a common goals. The type of leadership
is transformational, and transactional which are uses for different purposes. The transformational
leadership is an effective leadership in which changes are introduced by management for the
purpose of managing all functions and activities as it supports to develop the organizational
performance. This is important for each organization to analysis the competition level and
formulates strategies and planning accordingly which helps to develop the business productivity
and profitability. When working with their staff to create effective change, transformational
leaders rely on communication, charm, adaptability, and sympathetic support. On the other side,
transactional leadership is a more structured approach to management that focuses on
supervision, organization, and performance by managing all functions and activities.
SMEs in the banking sector confront growing competitiveness, the capacity to adjust to
fluctuating market requirements, technological progress, research, technology, and brainstorming
resource restrictions. Although small companies often use traditional bank financing, it is
challenging for small and medium-sized companies and may not be suitable at certain stages of
business life (Fitriasari, 2020). It has seen that different types of challenges faced by Jyske Bank
in relation to transformational and transactional leadership within Covid-19 period that are
explained below:
Accepting changes – For business organization it is important to bring the changes in
existing environment and maintain higher performance. By using the transformational leadership
changes could be taken by Jyske Bank to bring changes in their existing performance. This can
help to develop the organizational productivity and profitability. In relation to transactional
leadership it could be challenging for chosen organization to operate their business by accepting
the changes.
Lack of staff – Employees is main assets of organization who understand the goals and
contribute in business activities by managing all functions. As covid-19 occurred in whole world
have affected the business negatively. By following the transformational leadership, leaders
could make changes or motivate their staff to work by accepting technical method as it supports
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to develop the business performance. On the other side, it could be challenging for Jyske Bank to
operate their business within pandemic as employee’s returns to their homes. Thus, it affect the
organizational productivity (Hai, Van, and Thi Tuyet, 2021).
Small amount of finance – This is another challenged faced by Jyske Bank while
operating their business as it is small and medium size bank that offers small amount of loans to
their customers. During covid-19 it became challenging for organization to provide the loans
facility and other banking services to their customers under transactional and transformational
leadership. The company need to expand its business and bring the changes by offering more
loan services which can help to accomplish the business productivity.
Lack of motivation – Motivation is important for employees as it influence people and
provide the better quality of services which supports to make feel happy to their employees. It
has seen that employees of Jyske Bank are not motivated which has created the challenge for
organization to operate their business under transformational and transactional leadership. The
person requires to have proper understanding and knowledge about changing environment and
employees motivation that affect the business productivity and profitability negatively.
Lack of training and development program – As environment is changing where it
became important to provide the training and development program to their employees so that
could bring out the changes at the workplace and supports to develop the organizational
productivity. Under the transformational leadership and transaction leadership it became
challenging to provide training program where it affects the organizational productivity and
profitability. Without training and development programme it is not possible to accept the
changes at the workplace which reduce the organizational performance.
From the above it has been explained that there are many challenges faced by SMEs
while running their business in changing environment. Transformation and transactional
leadership are important to follow by leaders as it influences the number of employees and get
ready to accept the changes and manage all functions effectively.
To analyse how transformational and transactional leadership overcome challenges caused by
Covid-19 for Jyske Bank in the UK.
As per view point of Fitriasari (2020), Leadership is the process of influencing number
of people, and group to work collectively by accepting changes which can help to develop the
organizational performance. The management requires to have proper understanding and
8

knowledge regarding particular topic as it supports to manage all functions and activities
effectively. SMEs in the banking sector confront growing competitiveness, the capacity to adjust
to fluctuating market requirements, technological progress, research, technology, and
brainstorming resource restrictions. Although small companies often use traditional bank
financing, it is challenging for small and medium-sized companies and may not be suitable at
certain stages of business life (Fitriasari, 2020). This is important for each organization to
analysis the environment and comes to knw what kind of motivation and changes wants by
employees so that management should be focus on needs and put efforts to provide the kind of
services effectively. The main leadership approaches are transformational and transactional that
is used to operate the business by introducing changes as it supports to accomplish the business
goals. During the Covid-19 period, all businesses have been affected negatively where it became
essential to introduce the changes by overcoming the challenges. In context to Jyske Bank, there
are different activities and functions which could be applied by leaders to overcome the
challenges under transformational and transactional leadership that are as explained below:
Choose best leadership option – For business organization needed to have good leader
as it understand the goals and give their contribution to complete the roles as well as
responsibilities. If there is effective leader then could be opportunity for business industry to
grow their business. In relation to Jyske Bank, leaders is having major role as it needs to select
the best option out of many by following the transformational leadership which can help to
operate the business properly. This also helps to bring changes at the workplace and maintain the
higher performance.
To adopt new technology and innovation – A business reaches success when it is able
to accept the new technology and innovation as it helps to introduce the different types of
products and services which can help to accomplish business goals. In a crisis like the Covid-19
pandemic, strong and determined leadership is needed to make urgent decisions. During the
Covid-19 pandemic, the virus struck different places at different times and in waves without
prior information. In relation to Jyske Bank, to overcome the challenges of covid-19 it became
important to introduce the technology and innovation while offering different types of financial
services which can help to attract the number of customers which supports to develop the
organizational performance (Frangieh and Rusu, 2021).
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Use of digital marketing and social media – This is important for each organization to
keep connected with people by using digital marketing, and social media which are influenced to
develop the business performance. The business organization should have proper information
and knowledge about market as it supports to bring changes and managing higher productivity.
The use of digital marketing and social media are important as it helps to promote the products
and services among people and encouraged to make buying decisions. In relation to Jyske Bank
that is SMEs, make the use of social media and digital marketing for the purpose of promoting
their financial services and banking activities. All functions and activities are possible through
transformational leadership as it supports to accept the changes. The transaction leadership helps
to manage all function by following the ethics as it develop business profits.
Keep social distancing – The covid-19 is the serious pandemic which occurred in whole
world and affected the business. The banking sector is providing the financial services to their
customers by maintaining social distancing s it would help to keep people healthy and safe in
pandemic period. The leaders of selected organization make the use of transactional leadership in
which it understand the requirement and maintain social distancing as it helps to attracts the
number of employees and supports to develop the business productivity. Moreover,
transformational leadership is used to accepting new change and following the social distancing
as it could help to operate the business regularly and increase business performance.
Providing online services – In current period people does not have enough time to visit
the banks and other companies to buy products and services where use of online services such as
opening account, transaction, cancellation, and deposits which influences the number of
customer and helps to overcome the challenges as it affect organizational productivity and
profitability. In relation to Jyske bank, management could overcome the challemge of pandemic
which affects the organizational productivity (Gerald, Obianuju and Chukwunonso, 2020).
Learning programme – To operate a business, and managing all function according to
new trend there is need to focus on learning programme within organization as it helps to
manage the all functions and activities effectively. This is important for each individual to
analysis the environment and start to learn in their early age which supports to accomplish
business goals. In context to Jyske Bank, learning program are important as run by professional
who could guide how to operate business in covid period and affect the organizational
performance positively.
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From the above it has been explained that covid-19 is the serious pandemic that
occurred in whole world where different types of ways and activities are introduced by managers
of Jyske Bank for the purpose of overcoming the challenges by following transformational and
transactional leadership as it supports to bring changes in existing activity and introduce new
services which can help to develop the organizational productivity and profitability.
To evaluate the leadership strategies could be used by Jyske Bank to respond the changes
within Covid period.
As per view point of Adam, and Alarifi, (2021), Leadership is the main function for
business industry as it used to influence the number of employees at the workplace and get work
done. This is important for managers to analysis the function and introduces products and
services accordingly as it helps to support all functions and activities. Strategies are kind of
planning and procedure followed by business industry to manage all business activities by
overcoming the challenges and develops the business productivity. If there is lack of focus over
leadership strategies then could be challenging for business organization to operate their business
and maintain higher performance. There are different strategies to leadership could be follow by
Jyske bank to respond towards changes within Covid period that are as explained below:
To follow the effective motivation strategies – The type of motivation are intrinsic and
extrinsic which are followed by organization to influence the number of employees and gets
work done effectively. This is important for each organization to follow effective motivational
strategies which can help to accomplish the business goals. In relation to Jyske Bank, that is
SMEs operating their business by motivating their staff. The managers motives employees by
offering promotion, extra incomes, and transfer which supports to manage the business
functions.
Availability of resources – Resources are important to business organization as it is used
to arrange all functions and works. If there is enough resources then would be effective to
operate their business effectively. In relation to Jyske Bank, availability of resource is effective
strategy which could be used by leaders to provide better quality of financial and banking
services to their customers as it would help to improve the business performance in covid period.
Maintaining effective communication – In an organization group of people is working
collectively where it became important to maintain effective communication as it supports to
influence number of people and increase the business performance. The person who have
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involved in business activities requires to bring changes in their existing activities. Due to Covid-
19 it became challenging for leaders, employees, and customers to share their problems and get
optimum answers as it affected the business negatively. In relation to Jyske Bank, by using
different mode of communication such as digital marketing, online net banking and social media
became effective source of handling all finance related problems and reduce the work burden
that can help to operate the business effectively (Akpan, Udoh, and Adebisi, 2022).
Allowed employees to work remotely- In many regions, the leaderships of the SMEs in
the baking sectors have adopted new strategies for their employees to work remotely in
operations that do not require access to customer information, such as inquiries about financial
products. They send detailed requests to colleagues who continue to work in the office (Akpan et
al., 2022). Most leaderships of the chosen bank have already taken some action, including
isolating team members and activating certain business continuity plan sites for their sales teams
(Correia et al., 2020). This strategy supported to operate their business efficiently and increase
the performance.
Having contingency planning – A business continuity plan sites may lack the resources
to support a partnership model, forcing banks to consider alternatives in a protracted crisis. As
virus has spreaded to all major financial centres, the risk of transmission increases with the
spread of the disease. The banking sectors leaders should maintain and test contingency plans if
this happens and put clear triggers to implement these plans, for example, if a crisis breaks out at
or near the site (Gerald, Obianuju, and Chukwunonso, 2020). Contingency plans may include the
ability to immediately modify the homework model, which should avoid regulatory approval and
rigorous technical testing.
Therefore, the leadership of SMEs in the Baking sectors must ensure that appropriate
supervision is in place for all development work and that compromises between preparedness
and risk appetite are fully taken into account. Key issues are data security, fraud, cyber security
and privacy, especially the protection of personal information. The leaders also need to reduce
stress by updating business continuity and disaster recovery plans to meet these new operating
conditions (Correia, Dias, and Teixeira, 2020).
Conclusion
In above section, researcher have discussed about transactional, and transformation
leadership which are used for different purpose and manage the work within pandemic period by
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following the leadership strategies. The all strategies are followed by management for the
purpose of running their business and attaining the higher performance by maintaining social
distancing, This will help to accomplish the business goals by managing all functions as well as
activities. This is important for each individual to analysis the environment and comes to know
how employees will be motivates then offer the kind of products and services which supports to
accomplish he business goals.
CHAPTER 3
RESEARCH METHODOLOGY
Research methodology is a way of understanding and solves the research problems
systematically. This is important for each individual to analysis the environment and comes to
know what people wants then manage the functions and activities. This is important for
individual to analysis the business activities which are needed to handle the current project and
supports to accomplishing business goals. Research methods are most important to individuals as
it bring new technology and innovative thoughts at the workplace which supports to develop the
business productivity. Without research method it could be difficult for organization to operate
the business and related functions. To have right method and tactics could be opportunity for
business industry to regulate their business and maintain higher performance. The current
research is about leadership and its related strategies which are followed by business leaders to
bring changes in their existing performance and supports to accomplish the business goals. The
leader is a person who has good knowledge and skills about particular products and services that
affected the business. The methodology of research are defined below:
Research Philosophy – This refers to philosophy and set of principles which are
followed by researcher in order to collect information. This is important for individual to
analysis the all functions and activities. This could be explained as main function which is
followed by person in collection of data. The considering part is positivism and interpretivism. In
relation to current research, interpretivism philosophy is being used by researcher as it helps to
develop knowledge about leadership and its impacts at the workplace by managing all functions
and activities effectively.
Research approach – This could be explained as main function and approach which are
used to bring changes in existing performance. The research approach is the main activity uses to
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manage the all function and activities that supports to accomplish business goals. The types of
approach are inductive and deductive approaches that helped to develop business performance.
In relation to current research, deductive approach is used by research to collect data about
leadership and its related strategies which are followed to bring changes and accepting
challenges that helps to develop business performance. According to current research, leadership
is the main function which are used by leader to influence the number of people and get work
done.
Research strategy – The strategy refers to planning and strategy formulated by an
individual for the purpose of accepting changes at the workplace. This is important for each
organization to understand what is happening around and how people will be influence to
regulate their business by offering their better quality of products and services. The strategy of
research are experiment, survey, questionnaire, and interviews which are used by researcher for
the purpose of managing the business functions and activities at the workplace. The current
research is about leadership and its impacts on business performance as it influence employees
by providing motivation which can help to accomplish the business goals and maintain higher
productivity. The researcher has chosen questionnaire strategy in which it collects information
regarding particular topic such as leadership and strategies that can help to develop the business
performance by maintaining higher performance. This also helps to reach the positive outcomes
by gathering data and attaining business goals.
Choice of research – This could be explained as research method and systematic study of
particular topic as it bring lots of information and data regarding particular topic as it develop
understanding and knowledge effectively. This can help to maintain higher performance and
productivity at the workplace. The method of research are mono, mixed and multi method. The
mono method used to determine the qualitative or quantitative data in relation to bring
knowledge and understanding about particular topic. The mixed method is uses to applying
quantitative and qualitative data regarding topic that can help to manage all functions. The multi
method is uses to either qualitative or quantitative data that could develop information. In
relation to current research, multi method is being used by researcher that can help to gather
information about leadership and strategy is followed by researcher that can help to develop
business activities and functions.
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Data collection and analysis – This could be explained as method of data collection and
gather which could be used to develop the business performance and activities. This is important
for each organization to analysis the environment and comes to know the productivity which
supports to develop business activities. Analytical tool is an effective technique of analysing data
regarding the specific field of study. Current investigation is based on quantitative data that is
useful for researcher in evaluating of numerical information about the challenges faced by
hospitality industry while managing talent. Frequency distribution analysis is an analytical tool
that is use by researcher with purpose for analysing quantitative information within minimum
time duration. The sources of research are primary and secondary which are used for different
purpose. The sources of data collection are primary and secondary that can help to operate their
business effectively.
Primary and secondary data: Primary and secondary are two importance types of research
that facilitate researcher in gathering of qualitative and quantitative information. Primary
research helps researcher to collect quantitative information by use of questionnaire. On the other
hand, secondary research assist investigator in collecting of secondary data from different
sources such as books, magazines, articles etc. According to the current investigation
questionnaire will be used under primary method as it aid in collecting of reliable data from the
respondents (Tomčíková, 2019). This could help to bring information regarding leadership and
its strategies which are used to apply in organization for the purpose of accomplishing business
goals and productivity.
Sampling – This could be explained as method of selecting right people for the purpose of
gathering information by bringing new data and information regarding topic. The method of
sample are uses for managing the data effectively. Probability and non-probability are two
techniques of sampling that helps researcher in selection of sample size. In order to select sample
size for present study probability sampling has been chosen because it assists in selection of
sample in random basis and also not takes maximum time and resources of investigator. The
numbers of people who have been selected are 35 out of many, will give details about particular
topic.
Time horizon – This could be explained as time framework which states time period in
which all projects needs to complete and supports to complete the business activities as well as
functions. The person requires to have proper knowledge and understanding about particular
15

topic as it bring changes in performance. Time horizon is the activity of explanning time
activities which are used to develop the understanding and manage the performance. Gantt chart
is an effective tool of time management that will be used by researcher for managing time of
each activity. The current research is about leadership such as transaction and transformational
which are used by leaders for the purpose of bringing changes in their existing performance that
supports to develop organizational productivity and profitability. These activities are shown in
graphical way:
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17

QUESTIONNAIRE
Frequency distribution analysis
Q1) Do you have idea about the role played by leadership within banking
industry?
Frequency
a) Yes 30
b) No 5
Q2) As per your opinion, what are the major roles of transformational
leadership within business sector?
Frequency
a) Provides encouragement 12
b) Provides recognition and support 12
c) Inspires people to achieve their goals 11
Q3) What are the main initiatives requires to taken by management and leaders
of Jyske Bank?
Frequency
a) Maintaining individual identity 10
b) Training and development 10
c) Bringing changes in their existing performance 15
Q4) In you opinion, what are the benefits of leadership such as transformation
and transactional in attainment of competitive advantages?
Frequency
a) Strengthens human capital structure of company 12
b) Effective decision making 13
c) Building strong brand image 10
Q5) What are the effective strategies would be used by Jyske Bank for
maintaining effective leadership at the workplace?
Frequency
a) To follow the effective motivation strategies 7
b) Availability of resources 7
c) Having contingency planning 7
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d) Allowed employees to work remotely 14
Q6) Are you satisfy with benefits provided by Jyske bank in adopting
transformational and transactional leadership at the workplace?
Frequency
a) Strongly agree 10
b) Agree 8
c) Disagree 10
d) Strongly disagree 7
Q7) What are the relevant issues and challenges of transformational and
transactional that states how leaders responded to the impact of Covid-19?
Frequency
a) Accepting changes 7
b) Lack of training and development program 8
c) Small amount of finance 10
d) Lack of motivation 10
Q8)How transformational and transactional leadership overcome challenges
caused by Covid-19 for Jyske Bank in the UK?
Frequency
a) Choose best leadership option 8
b) Increased employee turnover 8
c) To adopt new technology and innovation 6
d) Use of digital marketing and social media 8
e) Keep social distancing 5
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CONCLUSION
The nature of the economy (developed or underdeveloped), small and medium-sized
enterprises (SMEs) are essential for the development of any country. Small and medium-sized
enterprises not only benefit the economy but also create jobs, increasing competition, shaping
business development in the country and revenues. Today, any economy worldwide cannot
achieve sustainable economic growth without the active role of small and medium-sized
enterprises, so it is still indebted to this sector (Hai et al., 2021). Moreover, this is an important
factor in reducing mass poverty in the country. Their contribution to the countries' economies
may vary, but there is an international consensus on their importance. Small and medium-sized
enterprises (SMEs) are the source of the country's economic growth and success (Klein and
Todesco, 2021). The leaders is having major role in business organization as it conduct the
environment analysis , comes to know competition level and introduce new ideas in front of their
employees so that they could contribute to organizational productivity and profitability.
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REFERENCE
Books and journal
Adam, N.A. and Alarifi, G., 2021. Innovation practices for survival of small and medium
enterprises (SMEs) in the COVID-19 times: the role of external support. Journal of
innovation and entrepreneurship, 10(1), pp.1-22.
Akpan, I.J., Udoh, E.A.P. and Adebisi, B., 2022. Small business awareness and adoption of state-
of-the-art technologies in emerging and developing markets, and lessons from the
COVID-19 pandemic. Journal of Small Business & Entrepreneurship, 34(2), pp.123-140.
Atiku, S.O. and Randa, I.O., 2021. Ambidextrous Leadership for SMEs in the COVID-19 Era.
In Handbook of Research on Sustaining SMEs and Entrepreneurial Innovation in the
Post-COVID-19 Era (pp. 19-39). IGI Global.
Correia, R.J., Dias, J.G. and Teixeira, M.S., 2020. Dynamic capabilities and competitive
advantages as mediator variables between market orientation and business
performance. Journal of Strategy and Management.
Fitriasari, F., 2020. How do Small and Medium Enterprise (SME) survive the COVID-19
outbreak?. Jurnal Inovasi Ekonomi, 5(02).
Frangieh, M. and Rusu, D., 2021. The effect of the carrot and stick transactional leadership style
in motivating employees in SMEs. Revista de Management Comparat
International, 22(2), pp.242-252.
Gerald, E., Obianuju, A. and Chukwunonso, N., 2020. Strategic agility and performance of small
and medium enterprises in the phase of Covid-19 pandemic. International Journal of
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