Last week's defeat to Turkey means O'Neill has only won one of his 15 games in charge, but Huddersfield midfielder Norwood is confident things will improve.
O'Neill will lead Northern Ireland into their Euro 2016 qualifying campaign and Norwood is happy to see the manager stay on.
Norwood, who impressed in the game against Turkey, is pleased to see O'Neill give himself and a number of other young players the chance to establish themselves in the side.
"All the lads are happy that the gaffer is staying on," he told Sky Sports. "He has been great for young players like myself, Lee Hodson and Shane Ferguson in giving us the chance to play on a regular basis.
"Personally, the gaffer has given me confidence as he given me the chance to play and has shown he believes in me.
"I have enjoyed every trip with Northern Ireland and it has been a great experience to play against the likes of Portugal, Russia and Turkey and it can only be good for my development as I want to play at the highest level possible."
Norwood believes Northern Ireland have shown promise under O'Neill, but feels they have been punished for individual errors in many games.
"I don't think the results we have had reflect some of the performances we have had under the gaffer," added Norwood.
"We have only won one in 15 games, but in general the performances have been good and it is only bad mistakes in games that have really hurts us.
"We are looking forward to the Euro 2016 draw and then we will be putting our focus into doing our best in that qualifying campaign."
Interview courtesy of New Era Global Sports