Looking for help. My 4 month old labradoodle exhibits very submissive/fearful behavior predominantly in new situations or situations that are out of her control. This includes cowering and submissive urination. This occurs when adults, children, dogs and smaller puppies that she does not know approach. After she gets to know them and feels comfortable, she begins to act like a "normal" puppy.
I'm sure this will not go away by itself. I'm looking for ideas on how to help her overcome this issue.

How long have you had the dog?
Is this a new behavior for her?

For starters, make a very concerted effort to prevent people from standing over her, bending down to pet her, etc.
From a puppy's point of view, us humans really tower over them.

Encourage people to greet the dog by kneeling a foot or two away from the dog, and offer the dog a really tasty treat, like cut up hotdogs. If need be, ask people to avoid prolonged or excessive eye contact with the dog.

Avoid the urge to reassure the dog when it is nervous or afraid.
Instead, remain completely neutral. Your only real involvement in the process should be to hold the leash, and quietly praise the dog when it does approach new people.

The dog may also be experiencing teething pain, which is confusing and stressful, and sometimes exacerbates problems in a naturally shy dog.

Yes. In fact, I would stand between the dog and any overenthusiastic greeters. Let the dog get curious and approach, rather than vice versa.

We've had the puppy (Bailey) for 3 weeks now. She's smart and intuitive, which probably contributes to this problem. I've tried to controlling the way adults and children that approach her but most people do not have a clue as to what I'm asking them to do. I’ll be more forceful. Our plan is to try and remove/avoid situations that cause her to negatively react. And at the same time to create situations that increase drive towards those same situations - i.e., when she sees another puppy, not let her play with the puppy. Then occasionally test her to see if she is making progress. What do you think?
I'd like to figure out how to "reward" proper behavior but I don't see how. Any thoughts on this?

 Quote: jim sumara

We've had the puppy (Bailey) for 3 weeks now. She's smart and intuitive, which probably contributes to this problem. I've tried to controlling the way adults and children that approach her but most people do not have a clue as to what I'm asking them to do. I’ll be more forceful.

I agree. I don't much care whether strangers understand what I'm saying; I put myself between them and the shy dog. I don't feel any need for a shy dog to have to interact with strangers. JMO.

Paradoxically, you'll probably find that the dog who becomes fully confident that you are a reliable buffer between her and the scary strangers will gradually become more open and less anxious.

As Alyssa says, this is all done in a very calm and understated way. That is, you wouldn't leap to position yourself in front of her or say anything in an agitated voice.

Gradual introductions to strangers (IMO) are far better done at home, and at her speed. If you can enlist adults and children to come over and sit facing you (not the dog), perhaps with an excellent treat in their open palm, I think that the dog will start to look at them in an interested way..... and probably move closer to that treat. A treat offered from a seated position, without staring or even speaking, palm open, casually, will go a lot further than treats offered from above the dog by an excitedly chattering person.

If you stop to chat on a walk and the dog is behind you, you will probably see her start to peer past your legs to assess the stranger. Similar treat activity can happen then too.

My own feelings about an anxious, shy dog are that if a loud group or an overbearing stranger is approaching, I give a calm "hi" and keep right on walking.

I don't particularly reward friendly behavior from the dog; I think that the dog herself will discover the rewards. Her confidence will depend on yours, and her anxiety will be assuaged as she learns that you can be depended on to protect her.

I'll betcha she becomes at least tolerant of strangers who you allow to interact, and probably friendly. But I would give her all the time she needs.