Smith’s award for December has seen him become the first Villa boss since Martin O’Neill in April 2010 to scoop the prize.
Villa took 11 points from five matches over the course of last month, claiming derby wins at both Albion and Wolves.
Smith said: “Getting this award is acknowledgement the team are achieving something at the moment.
“You don’t get this award unless you’re getting results, you don’t get results unless your performance levels are good and you don’t get good performances unless the players are working hard.
“This isn’t just my award, this is testament to all the players and staff who’ve been working hard, especially during the month of December.”
Smith saw off competition from Everton’s Carlo Ancelotti, Burnley’s Sean Dyche and Manchester United’s Ole Gunnar Solskjaer to win the accolade.
He added:“It puts a smile on my face to be mentioned alongside those elite managers at Aston Villa.
“It’s been far too long – nearly 11 years since a Villa manager was awarded one of these.
“I’ve still got a way to go as Martin (O’Neill) won four, so hopefully we can continue the progression we’re making.”