The Frenchman has forced his way into Ranieri's first team since the New Year.
"Menez is extraordinary," said Ranieri.
"He felt that he had to play every game for the full 90 minutes though and I couldn't give him that.
"I spoke to him and explained why he couldn't be a full time regular. The boy seems to have learnt his lesson and you can tell by the way he is playing now. I am really proud of him.
"Every player is really important to this team. Then there are exceptions like Francesco Totti, who is fundamental for us.
"There must be a close relationship between the team and a player. Everybody needs to understand his role and work towards a common interest."