Italian boss Ranieri has a record of 11 defeats in 13 games.
After a damaging defeat against Norwich saw them drop into the bottom half of the table, Ranieri needs to choose players that want to fight hard for the club.
It was the first time this season that the Canaries moved out of the bottom three.
The Hornets have lost 11 times in 13 games under Ranieri.
Ranieri said that it was important for the lesson to be learned that the players played as a team.
The veteran coach was angry with his players after a seven game winless run saw them fall to 18th place.
He apologized to the fans because they wanted to do something better. We asked the players to light the fire, but after the goal we vanished.
I believe in the players' reaction. This way we go straight into the Championship is not possible. The players who play for the team should have heart and mentality.
We are all together and I speak with the board every day. The players who want to believe are the ones I believe in. Go home, who doesn't want to believe?
We have to act immediately.
It was their fourth win from 22 top-flight games this season, but they have now collected three points in back-to-back games after beatingEverton last time out.
Josh Sargent scored twice and Juraj Kucka added a late own goal for the Hornets, who also had forward Emmanuel Dennis sent off for two bookable offenses.
The Nigerian is the club's top scorer this season with eight goals, but will miss the crucial match against bottom of the table Burnley after the international break.
Ranieri gave his first appearances in defence to the January signings.
"Maybe we played better 10 v 11," Ranieri said. That is not good. I have to choose the players who want to fight. 11 v 11 is what you have to play.
The new players understood my philosophy. Some players don't understand that I want to play straight away, no dribble, shoot straight away.
"We have to act immediately."
I'm not worried about the future.
Ranieri shocked English football by leadingLeicester to an unthinkable title triumph in 2016 but he was sacked by the Foxes the following season.
He was appointed as the new manager of the Hornets in October on a two-year deal, replacing Xisco Munoz, who had been sacked.
The Pozzo family took over the club in 2012 and have had 14 managerial changes.
Ranieri told Radio 5 Live that he was not worried about the future.
I want to react and be calm. I want players who are passionate and who are willing to give their all for the people of Watford.
Ranieri said he was very confident in turning it around.
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