Morgan took temporary charge of the Blades for the second time last week following the sacking of David Weir, who managed to secure just one win in 11 games this season since succeeding Danny Wilson as manager in June.
Former skipper Morgan takes charge of his second game since Weir's departure with the club sat bottom of the table, but insists all is not lost this season.
"Kevin Blackwell came into the club on Valentine's Day (in 2008) with us a point off the relegation zone in the Championship," Morgan told the club's official website.
"We narrowly missed out on the play-offs that season, so we still have time on our side in October.
"If the lads want to pick the gauntlet up and have a good crack at this division it is there for us, if we don't believe and just sit back we will continue to struggle."
Morgan added: "The talent we have can't be questioned; the problem at the moment is psychological.
"Belief is a key word at the moment and somehow that needs to be instilled into the players."
Former Derby manager Nigel Clough was an early favourite to succeed Weir, but MK Dons boss Karl Robinson and Sven-Goran Eriksson have overtaken him in the latest betting odds.