Yes, you can. They're simplistic and a bit rubbish, as per the sad usual for city builders.

In a nutshell, you build a barracks and supply it with the right types of goods. Slowly it will train soldiers until the unit reaches 36 men. You can deploy the unit by clicking on an incon in the barracks. Stick the flag down wherever you want the unit to move to. The soldiers will automatically attack any enemies within close range. Alternately you can click on the attack icon, and they will head off after the closest enemy or enemy village. You have 2 formations to choose from, and 3 troop types. The formations add different bonuses to your units, the troop types function in a rock-paper-scissors fashion.

There's a rudimentary morale system. As soldiers die the unit loses morale. I think the enemy troop type has an impact on this too, and the number of enemy dead. If morale reaches breaking point the unit will break and rout. It's possible to have a battered unit with high morale if the battle goes your way, so it's not too much a case of numbers=morale.