Sherwood succeeded Paul Lambert at Villa Park last month and since his appointment they have won four of their six matches in all competitions.
Villa come into Saturday's meeting on the back of three successive victories - against West Brom in both the league and FA Cup, before last weekend's 4-0 demolition of Sunderland which ultimately cost Gus Poyet his job.
Swansea's form has been inconsistent of late, with back-to-back wins over Manchester United and Burnley followed by consecutive losses at Tottenham and then at home to Liverpool.
"He [Sherwood] has gone in there and lifted the confidence," Monk said. "They have very good players there but they weren't playing to their full potential before.
"Tim is an honest guy in the way he approaches games and Villa have picked up in recent weeks and we're expecting a really tough game this weekend.
"Their priority I'm sure is to stay in the Premier League. Of course cup games are always nice to look forward to, but that can breed confidence too.
"But we've got our own targets and what we want to achieve in the remaining games this season. The next target is to beat 47 points, Saturday is another challenge and we want to get more points on the board."
Swansea sit ninth in the table, while Villa's successive league wins have seen them climb out of the relegation zone to 16th, three points clear of danger.
Fabian Delph was named in England's 24-man squad for the upcoming internationals against Lithuania and Italy, and Sherwood says the midfielder is just the type of player he needs to help Villa out of their difficult position.
"I am not surprised he's been called up. He's been fantastic. He's been outstanding," Sherwood said.
"He has everything I need in a player - his application and desire to play for this football club.
"It's fantastic for me to inherit that kind of player - a player who wants to commit to a club that is struggling in this division.
"He's the kind of character I need when you're struggling towards the bottom of the division."
Ron Vlaar's calf injury means the defender is doubtful for the game, as are Nathan Baker (knee), Aly Cissokho (knock), Philippe Senderos (calf) and Kieran Richardson (knock).
Swansea have Federico Fernandez back available after he missed Monday's defeat to Liverpool due to family reasons, although Kyle Bartley (knee) remains out.
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