It is unfortunate when a dog isn’t able to have these social situations early in life and then develops a fear of unknown people or other animals. Dogs are easily conditioned and they build associations based on your cues as much as they do with actual situations. Your reaction (yelling, taking the dog out of the situation) to your dogs unwanted social behaviors (aggression, barking, growling, or retreating) can actually reinforce the dog’s fears and insecurity and enable the unwanted behavior to continue.
A way to reorient your dog socially if he’s grown fearful of other animals or people is to associate something he really enjoys with the uncomfortable social situation. Give your dog his favorite toy, a bone, or a treat when you are about to encounter people or other animals that may trigger his unwanted social behaviors.
If your have a very challenging time socializing your dog on your own, it’s wise to consult a dog behavior specialist or trainer for some help. A well-adjusted dog makes your life easier and it is a lot easier to include your best friend in activities when he’s comfortable with social situations.
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Resources: http://www.paw-rescue.org/PAW/PETTIPS/DogTip_SocializationAdultDog.php