Scholes spoke after the Dutchman was given his marching orders and sacked on Monday.
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While the club legend has sympathy for Ten Hag, he felt the team went backwards in the Premier League.
Scholes exclusively told talkSPORT: "No, I don’t think so (in a better position than when he arrived), and that’s the biggest thing.
"You want to see improvement but I don’t think there’s been any. If anything, they’ve got worse.
"When City first won the league you could feel there was something coming for a couple of years before, they were building.
"When Liverpool first won the league you could feel something coming under Jurgen Klopp. I’ve never felt something like that coming under Erik ten Hag."