Dolan picked up the reins for Saturday's 1-0 defeat at Manchester United following the shock dismissal of Brian McDermott last week.
But he returned to his day job at Reading's Hogwood academy base on Sunday, resuming his coaching duties with the club's U-12s.
Although the Royals are now seven points from safety, the 45-year-old Dolan said: "It is easy being a manager compared to an academy manager.
"It will be a lot more stressful if our Under 12s are not passing the ball and I am thinking who is going to come through. That is the way I could lose my job. With the first-team, everyone gets time off during the international break.
"It doesn't work like that in the academy. We are a serious club. I go and watch kids from between nine and 15 at Hogwood."
Dolan will soon meet up with owner Anton Zingarevich to discuss his employment options for the coming weeks.
"The owner has been very clear with me," added Dolan. "We will sit down early next week and do what is best for Reading FC."
Dolan's managerial experience only extends to two seasons at Exeter before becoming Reading's academy manager in September 2004.
The Galway-born Dolan, an Irish youth international before being forced to retire after contracting cancer, is not underplaying his own strengths.
"I am a valuable commodity," he said. "I have been a very good manager before and my skill set suggests I would be a manager rather than anything else.
"But the job of manager and academy manager are totally different."