The Blues were humiliated 3-0 at home in the UEFA Champions League round of 16 first leg by Bayern Munich this week.
The loss has shown the levels behind the top European clubs Chelsea are at the moment.
And Cascarino is not impressed with Lampard's coaching of the team.
"It's an awkward one with Frank, because we have had words before," the ex-Chelsea striker told talkSPORT.
"Not bad, but I had a phone call and things were said.
"If I'm being brutally honest, I've always found Frank to be a little bit spiky with some of the things that you say, and you can be complimentary but Frank takes it slightly the wrong way.
"I'm not convinced by his management at times this year, because I do think it's an easy excuse just to go youngster, youngster – he's changed that team a hell of a lot."
He went on to say about the dropping of keeper Kepa Arrizabalaga: "I don't like the Kepa issue. He deserved to get dropped, but keeping him out of the team – I'm not so sure that's a good decision.
"You have to show loyalty to players sometimes, even after a bad game.
"But it's happening all over the pitch, everywhere has been changed, everybody has been changed around. It's really hard to guess Chelsea's XI and that tells you in some way that Frank is spinning plates around his team."