The Cumbrians have won just one of their past seven games and are only four points above the relegation zone in League One.
But Steel was quick to point out the review was simply part of an "ongoing" process.
"The managerial situation is reviewed on an ongoing basis," he told BBC Radio Cumbria. "We are not looking to replace the manager at this time, but there's always a contingency in place.
"I don't think it's the right solution every time to sack the manager on the back of four or five bad results.
"It is the board of directors that appoint the manager in the first place, so surely there is some responsibility on the board to honour the agreement they have with the manager."