The BBC Pundit spoke about West Ham on Match of the Day.
And Lawrenson believes West Ham's loss was all of their own making, expressing his surprise at how little they looked like a typical Sam Allardyce team.
He told Match of the Day 2: “It so wasn’t a West Ham team. Not a team set up by Allardyce with his knowledge and experience.
“City were so helped by West Ham today. West Ham were abysmal."
Meanwhile, Lawrenson also discussed the future of boss Allardyce, delivering a pessimistic prognosis of what lies ahead for the 60-year-old at Upton Park.
Indeed, he feels West Ham would have offered Big Sam a new deal already had they any plans to keep at the club long term.
The BBC Pundit added: “It’s like the elephant in the room. If they were going to offer Allardyce a contract, they would have offered him one already.”
After West Ham's limp loss to Manchester City, the Hammers sit 10th in the Premier League, just one point above Crystal Palace and only two above Everton.
Considering how much praise the east London side received earlier this season and the criticism Roberto Martinez's Toffees got, it would be amazing to see Everton finish above them...