Agger, who has started every game under Dalglish's management, says the King has restored confidence and morale in the squad.
"The easiest answer is the confidence and mentality of working for each other," said the Dane.
"Kenny came in at a difficult time. It is always difficult to come in when a team is struggling, but I think we have started to play better.
"Definitely he lifted the team, definitely he lifted the team spirit, and we have to give the credit to him and Steve Clarke.
"We've got three wins in a row so confidence will rise and hopefully that will carry on in the next couple of games.
"There is quite a way to go and that is why we have to take one game at a time, to get three points and see where that takes us."