Staff interaction in a childcare setting from which the child learns by example and instruction is known as

Behavior modeling.

Explanation:

Behavior modeling is a therapeutic process that is focused on changing any undesirable negative behavior in an individual through the use of positive or negative consequence and biofeedback.

This simply means that, reinforcing desired behaviors in an individual while withholding reinforcement for any form of undesired behavior is achieved through the process of behavior modeling.

Behavior modeling is typically based on operant conditioning principles, through negative or positive reinforcement, undesirable behaviors developed by an individual are mainly replaced with more desirable ones.

Operant conditioning can be defined as an associative learning process which involves reinforcing the strength of a behavior.

Additionally, behavior modeling can also be used to correct human behaviors or disorders such as enuresis (bed-wetting), Obsessive-Compulsive Disorder (OCD), generalized anxiety disorder, Attention-Deficit/Hyperactivity Disorder (ADHD), phobias, etc.

Hence, staff interaction in a childcare setting from which the child learns by example and instruction is known as behavior modeling.