Birmingham City parted company with Harry Redknapp last month, after a poor start to the season.
Redknapp was sacked from Birmingham last month, after the Blues made a poor start to their Championship campaign.
And Pearce has suggested that the Midlands side made a big error by getting rid of Redknapp.
He said: “To say he hasn’t had much time there is a ridiculous understatement. He saved them from relegation last year when they looked doomed.
“The club allowed him to spend £15m on new players and he has worked with those players for a week and then the club decides to change management. It is a ridiculous decision based on I don’t know what. Prior to Harry coming in, it was not as if the club was setting the world alight was it?
“It is tough, management, and some of the decisions made at board level confuse me and confuse a lot of people in the game.”
Redknapp became a hero at Birmingham last season, when he took over and saved them from the drop.
The 70-year-old boss then rang the changes over the summer, with a whole host of new players coming in to St. Andrews.
However, they were not given time to settle, as Birmingham became concerned after their poor start.
Birmingham were on a sequence of six defeats in a row at the time Redknapp was sacked, and they still remain in the relegation zone.
Steve Cotterill has now taken over from Redknapp at Birmingham, and will be looking to spark a big improvement after the international break.
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