According to Rotter's theory, most behavior is learned from around us - from other people and from our situations. Behavior can be conditioned internally or externally, with a general goal of maximizing rewards or minimizing/avoiding punishments. The condition works on expediencies or expectations, altering how much we expect a given thing to go a given way, and make decisions accordingly. The theory considers both what has happened to the person and how the person perceives any given situation for a more complete picture.

To understand an individual's present behavior, the past events in that person's life should be considered. Rather than digging into the deep and buried past as some do, though, Rotter believes more recent events can be used. An example from the book explained that poor grades in high school and poor SAT scores are sufficient evidence to expect an individual to fail in college. Just as the past can be used to create expectations, the present can change how the past is viewed; as new experiences and knowledge come, feelings about past events are updated to reflect the new feelings.

• “He credits Adler with focusing his attention on the goal-directedness of behavior and on the unity of personality.”
• “…also was influenced by Lewin's field-theory approach, which emphasizes the interrelatedness of behavior, and postulates that multiple factors are responsible for the occurrence of any behavior. Rotter accepted these assumptions, as well as the view that behavior must be described from the perspective of the person whose behavior is under scrutiny.”
• “…Rotter reports being influenced by the writings of a number of learning theorists, including Thorndike, Tolman, and Hull. In general terms, his social-learning position is an attempt to integrate two major trends embodied in the work of these theorists: a reinforcement approach and cognitive or field theory.”
• “… a person might believe initially that a woman could never be elected President of the United States (an expectancy of 0 percent) but, as a result of the women's movement and extensive media coverage of the number of women who have entered politics and been elected—like Hillary Rodham Clinton, Nancy Pelosi, and Olympia Snowe—this expectancy could change radically and even approach absolute certainty (100 percent).”
• “… three different kinds of expectancy (Rotter, 1982, pp. 243–244): (1) simple cognitions or labeling of stimuli (“I think that is a painting by Picasso”), (2) expectancies for behavior-reinforcement outcomes (“If I wear my Tommy Hilfiger sports jacket, my friends will compliment me”), and (3) expectancies for reinforcement sequences (“If I graduate from college, I will probably get a high-paying job and become wealthy and respected”).”

Rotter's theory does not have clearly defined stages, but instead is based upon the various interactions an individual experiences through life, all of which will vary to some degree from one person to another. Early on, most of these interactions primarily involve our parents. As we grow, others are added, and the stimulus generalization, wherein we associate certain situations with others we have previously experienced, grows more complex.

Rotter also considered language development highly important, as words are powerful tools for guidance and expression of feelings (affection, irritation, etc).

• "Since the effect of language is to classify, to categorize, or to abstract similarity in events, it serves, therefore, to determine and enhance the nature of generalization. If an event is symbolized, it will increase generalization to other events that are similarly abstracted. Not only does language determine generalization … on the basis of the subject's implicit categorizing, … the language of others may be used by the observer as a stimulus to determine, control, or enhance generalization."
• "He minored in speech pathology and studied with Wendell Johnson, a linguist whose work focused on meanings in language. Johnson's ideas had a great influence on Rotter in terms of his coming to believe that language should be used very carefully in psychology in terms of how one defines terms and theoretical constructs."

• One of the first things to determine is whether a person focuses on skill (internal control) or fate/chance (external control). Those with internal control tend to be more successful.
• Rotter used a variety of methods for assessment, each with a different strength and focus.
• Interviews are good for determining personality traits and for counseling.
• Projective tests are good for clinical diagnostics.
• Controlled behavior tests check the individual's response to certain situations in a controlled environment.
• Questionnaires are useful for checking social-learning hypotheses.

• "Rotter notes the potential usefulness of five major techniques for the clinical measurement of personality: (1) the interview, (2) projective tests, (3) controlled behavioral tests, (4) behavioral observation methods, and (5) the questionnaire."
  
• "Projective tests such as the Rorschach, Thematic Apperception Test (TAT), and his own Incomplete Sentences Blank, Rotter believes, can be used to advantage in clinical diagnostic work. While he finds the Rorschach of relatively little use in measuring social-learning concepts (Rotter, 1954, p. 289), the TAT can be used to advantage, because the social-learning position is concerned with the individual's reactions to stimuli such as mother and father. The incomplete-sentences method can also be used to measure freedom of movement. In this technique, people are asked to finish sentences after the investigator provides the first few words—for example, “I like ...,” “I suffer ...,” “I wish ...,” “My father ...,” “Sometimes I feel....” Responses are assumed to indicate underlying conflicts that determine expectancy levels of failure in given situations."

• Rotter believes therapy to be a learning process, and that the problem is in the individual's relations with others rather than in their own mind.
• Because different individuals have different needs, the therapist must be flexible about treatment, and must have an evolving relationship with the client.
• Therapy should involve helping the individual to understand what behaviors are causing problems, and how to change them. It may also involve teaching the individual to better discriminate what is acceptable in different situations.
• Sometimes, the individual may need to change careers, home life, or school situation.
• Sometimes, the individual may mostly just require reassurance.
• In addition to working away maladjusted behaviors, the therapist should help the individual to learn positive behaviors.

• "In general, adjusted individuals experience satisfactions growing out of the performance of behaviors that are seen as constructive by society; maladjusted people, in contrast, are perpetually dissatisfied with themselves and behave in ways that precipitate punishing responses from society. Furthermore, Rotter believes that maladjusted people are often characterized by low freedom of movement and high need value (Rotter & Hochreich, 1975, p. 106). Such individuals are convinced that they are unable to obtain the gratification they desire. As a result, instead of learning how to achieve their goals, they learn how to avoid or defend themselves against actual or anticipated failure."
  
• "In helping clients change low expectancies of success, Rotter uses a variety of approaches, including reinforcing positive behaviors, ignoring inappropriate behaviors, giving advice, modeling appropriate behaviors, and pointing out the long-range consequences of both positive and negative behaviors."