shy/fearfull GSD

Question
i have a male GSD puppy about 11 months old, and the problem is that hes real shy, when people come over to my house, and we go to the backyard, the dog will get all nervous and wont come anywhere around other people. He has no problem with all of my friends, he even loves some of them... for example, i took my dog for a walk to my buddys house yesterday, and his mom tried to pet my dog but my dog wouldnt go near her, sometimes he even urinates... hes a huge dog.... so if someone can please help me out with this problem, i want my puppy to grow up to be a big strong confident dog

Answer
These problems are best prevented by careful selection of breeding stock and early socialization.  You should still be able to improve things, but he may never do as well as many dogs around strangers.  Start by controlling your emotions and keeping yourself positive.  You can't hide your stress, and it makes things worse.  He won't understand he is upsetting you, not the the threatening stranger.  Make a show of welcoming them.  When you can, have them offer him a treat.  

The urination could be submissive urination.  Many dogs eventually outgrow it, but you can reduce it by building the dog's confidence up.  Start with obedience training.  The key to most behavior problems is approaching things using the dog's natural instincts.  Dogs see all the people and dogs in the household as a pack with each having their own rank in the pack and a top dog.  Life is much easier if the 2 legged pack members outrank the 4 legged ones.  You can learn to play the role of top dog by reading some books or going to a good obedience class. A good obedience class or book is about you being top dog, not about rewarding standard commands with a treat. Start at http://www.dogsbestfriend.com/  As you praise the dog for following your commands, it will build its confidence.  

Play tug of war with the dog and lose.  However at the end of the game, take the rope or toy and put it up, less the dog becomes confused about who is top dog.  Ropes from the pets' store quickly turn to hazardous shreds.   Ones I made  lasted much better.   Go to a hardware or home center that sells rope by the foot.  Buy 2' of 3/4" poly rope. Melt the ends, and tie  knots in it.   Get them as tight as possible, put it in a vise and pound it with a hammer.  Watch carefully, and be ready to discard when it comes apart.

Finally, make sure it has a den to live in.  If you are not using a crate, buy one.  The dog may be happier in its den than loose in the house.  It relaxes, it feels safe in its den.  It rests, the body slows down reducing the need for water and relieving its self.  Dogs that have been crated all along do very well.  Many of them will rest in their crates even when the door is open.  I think the plastic ones give the dog more of a safe, enclosed den feeling.  Metal ones can be put in a corner or covered with something the dog can't pull in and chew.  Select a crate just big enough for the full grown dog to stretch out in.

A dog that has not been crated since it was little, may take some work.
Start out just putting its toys and treats in the crate.  Praise it for going
in.  Feed it in the crate.  This is also an easy way to maintain order at
feeding time for more than one dog.