Steve McManaman believes Kenny Dalglish has re-installed the traditions and values that served Liverpool so successfully during the halcyon days of the 1970s and 80s.

The former Reds winger was impressed with the manner in which the Scot revitalised the club's fortunes during the second half of 2010-11.

However, having worked under Dalglish's tutelage during the early days of his Anfield career, McManaman insists he wasn't surprised by the manager's impact.

He said: "I joined as an apprentice when I was 16 and Kenny signed me as a pro two years later. It was Kenny who gave me my chance and I learned a lot from him.

"He has this great way of dealing with people. Whether it's the person who works in reception or the guy on the car park, everyone has a high opinion of him.

"Players love playing for him and he commands respect. He was a great player himself so he's been there and done it. He knows what works and what doesn't work.

"People I speak to at the club now talk about how much the atmosphere has changed. They are more relaxed.

"Kenny has also brought back the old Liverpool values which were so admired. Everything is done behind closed doors and what goes on in the dressing room stays in there.

"All that combined makes for a happy group of players and when you've got that you find they try more for the manager."

Before returning to the Liverpool hot seat in January, Dalglish's last managerial role was at Celtic in 2000.

However, he remained actively involved in football, taking up a position as club ambassador in 2009 in addition to a role at the Reds' Academy.

"Kenny might not have been a manager for a long time but he certainly hadn't been out of the game," added McManaman.

"I spoke to him before he got the job in January and his knowledge of football around Europe was fantastic. He was the logical choice for me - other candidates were not good enough or big enough to manage Liverpool Football Club.

"It's a huge club and it needs a huge manager. Kenny is the right man and despite all the advances in technology and sports science, there's still room for an old school manager.

"Kenny got the team playing. It was great to see and I really hope it's the start of a new era. People talk about cycles and Liverpool are on the way back up.

"It's hard to say what's realistic next season as there's a lot of business to be done before the action starts. But with another three or four new faces Liverpool should certainly be challenging for the top four."

Watch Steve McManaman's top five LFC goals

After guiding Liverpool to a sixth-place finish, Dalglish moved swiftly to bolster the ranks with the acquisition of Sunderland's highly-rated midfielder Jordan Henderson earlier this month.

McManaman admits he was impressed with the England U21 star's form at the Stadium of Light last term, and is confident he can develop further under Dalglish's guidance.

"Jordan is a very promising young player and had a good season with Sunderland," he said.

"Like most good players I think playing in a better team will bring out better qualities in him. No disrespect to Sunderland but I expect a huge amount of improvement from Jordan. He's still young and has a lot of potential."

Henderson, who recently turned 21, joins a Liverpool squad brimming with talented young players.

The likes of Jonjo Shelvey, Martin Kelly, Jay Spearing, John Flanagan and Jack Robinson all made a positive impression on the first team in 2010-11 having been handed a chance to shine by Dalglish.

"Fans love seeing young local lads coming through and business wise it's vital," said McManaman.

"It certainly looks like they've got some really special ones. I was at the Fulham game towards the end of the season when Liverpool were outstanding. Jay Spearing and John Flanagan were excellent in that game.

"Martin Kelly was also very impressive before he got injured and Jack Robinson did well when he played. Obviously Jonjo Shelvey was brought in from elsewhere but he's another youngster who has done well.

"Kenny was really clever the way he brought some into the side at the end of the season. It was a great time to play them because there was no real pressure.

"He's seen how good they are now and whether they can cope with the demands of playing for Liverpool."

One man who knows all about breaking into the Liverpool first team at a tender age is Steven Gerrard.

Having missed the final months of the 2010-11 campaign after undergoing surgery on a groin problem, the Reds captain is set to return for the start of pre-season training next month - and McManaman feels the 31-year-old can comeback stronger than ever before.

"The complete break he's had from the game will do Steven the world of good," he said.

"Both physically and mentally he will have benefited. You can become sick and tired of playing all the time.

"I know he's been working so hard to get back from the operation. He's a fantastic player and I expect a really big season from him. He will come back fitter, stronger and better than ever.

"He might be 31 but he doesn't need to reinvent himself as a player at all. He's looked after himself well and still has so much to offer.

"Steven still has the ability to dominate games like he always has and I think we'll see that again next season."