Saunders, who departs npower League One side Doncaster, was unveiled to the media at Molineux on Monday afternoon following a whirlwind 36 hours for the Black Country club after Solbakken was sacked on Saturday evening.
Following his sacking and Saunders' appointment, Morgan said: "Performances have fallen well below the standards we expect at Wolverhampton Wanderers. I didn't think appointing Stale was a gamble. It was out of the box. I think Dean is a very different character."
The embarrassing FA Cup third-round exit at non-league Luton proved the final straw for Wolves' hierarchy, following a dreadful festive period containing three successive defeats which had left Wanderers 18th in the npower Championship and with just three wins from their last 16 league games.
Solbakken only took charge in the summer and arrived in England relatively unknown, despite a short stint as a player at Wimbledon in 1997/98 and an established international career with Norway before spells in management with the likes of Copenhagen and Koln.
Morgan added: "The mistake, in hindsight, was a culture difference. Dean has played across British and European football. He knows a lot of the players already. He's a hard-working bloke. If you listen to Dean, then his football philosophy isn't rocket science. He asks the players to work hard. He's a hard-working guy and asks his players to do that."
Wanderers sold the likes of Steven Fletcher, Matt Jarvis and Michael Kightly in the summer following relegation from the Barclays Premier League last season, although Solbakken was allowed to reinforce his ranks.
It cannot be doubted that his efforts were thwarted by an horrendous injury list, with more than 10 players in the treatment room of late.
Asked whether he should have been given more time, Solbakken simply told Sky Sports News: "Yes.
"It's the name of the game. I am not a bitter person but obviously I think it was the wrong decision, but I sincerely hope Wolves can climb the table and they will be successful."