Final answer:
The social-cognitive theory, by Albert Bandura, emphasizes learning by observation and cognitive processes that result in personality differences. Key concepts include reciprocal determinism, observational learning, and self-efficacy, which help explain individual behavior patterns and personal development.
Step-by-step explanation:
The personality theory that focuses on learning by observation and on the role of cognitive processes that produce individual differences is known as social-cognitive theory. Originally proposed by Albert Bandura, this theory is characterized by its emphasis on how people learn behaviors through observation of others, and how their cognitive processes affect their learning and personality development. Bandura introduced key concepts like reciprocal determinism, observational learning, and self-efficacy, which help explain how behavior, cognitive processes, and the environment interact to shape personality over time. Unlike purely behavioristic approaches, the social-cognitive theory recognizes the crucial role of internal mental states in the learning process and suggests that individuals can learn in the absence of external reinforcement, accounting for individual differences in personality.
Within the social-cognitive framework, observational learning occurs when individuals model their behavior on the behavior of others, which they have seen to be rewarded or punished. The concept of self-efficacy, on the other hand, pertains to an individual's belief in their capability to succeed in specific situations, influencing the challenges they undertake and the determination with which they apply themselves to achieve their goals.