Bandura's social learning theory posits that personality and behavior are shaped by observing and imitating others. According to the theory, we learn new behaviors by watching significant others or role models, and imitating their actions, especially if reinforcement is present. The process of observational learning involves paying attention to a model, retaining what is observed, reproducing the behavior physically, and being motivated to imitate the model. Bandura's theory suggests that personality develops through social interaction and environmental influences rather than innate traits.