Stuart Pearce, who was relieved of his duties after the FA chose not to award him a new contract, was the subject of intense criticism as his side floundered in Israel, losing to Italy, Norway and the hosts.
And former England manager Hoddle, who was speaking at a charity event organised by the Marina Bay Sands resort in Singapore, believes the new manager must be able to hit the ground running.
“I think it was very disappointing to everyone in England the way we performed in the tournament," he told reporters.
“They’ve already made the decision that Stuart is not going to remain as the U-21 coach. So someone has to go in there and take a hold."
Critics have suggested the inclusion of the likes of Alex Oxlade-Chamberlain in England's 2-2 friendly draw with Brazil rather than the Under-21 squad shows how under-valued tournaments for younger age groups are.
Hoddle shares this view and feels something must be done to ensure the next generation of youngsters are given the correct coaching, while also including the very best players from each age band.
He added: “The FA has to make big changes in the rules so that we can play our strongest team. If we do play our strongest teams in these tournaments, I do believe that we can win them, if not get into the finals.
"There’s a much bigger picture for a generation of kids coming through, where we’ve got to change the mentality of how we coach the new generation that can handle the ball better.”