Despite steering the Green and White Army to defeat against minnows Luxembourg, the IFA president has backed the former Shamrock Rovers boss to continue as manager
O'Neill, whose contract expires after October's qualifiers against Israel and Azerbaijan, oversaw a 3-2 away defeat against Luxembourg, casting doubts over his suitability for the role.
However, Shaw believes that the former Shamrock Rovers boss remains the right candidate to lead the team into the qualification for the 2016 European Championships.
"In Northern Ireland's case one result does not change anything," he told the Belfast Telegraph. "I still see him as the man to take us forward to the European Championships."
Northern Ireland are currently fourth in Group F where they find themselves level on six points with Luxembourg following Tuesday's defeat and Shaw admitted that the result is "one of the worst results" in Northern Ireland's history.
He said: "It was a very poor performance from us and particularly in the second half we lost it completely.
"It will go down as one of the worst results in our history because we were playing one of the nations that have always been considered [minnows] of world football.
"However, I think you have to give Luxembourg credit because they have come on in recent years and they deserved to win.
"We have to do our best in the last two qualifiers and keep away from the bottom of the group and then after that we'll look forward to the European Championships."