This is not the way to house-break your dog and will usually make the dog nervous and submissive. If you catch your puppy urinating or defecating, make a loud noise to distract it, take the dog outside and let him finish the act. Reward the dog for doing his business outside.
You need to use a crate to teach the dog not to go inside your house. The dog does not normally urinate or defecate in the same place where it sleeps. Buy a crate that will fit the puppy as it grows older. This is easily accomplished by getting a crate that has removable panels.
You will not want to put the crate in the same room as yours at night because the puppy will probably whine. However, the dog may have to go to be let out of the crate during the night to do its business. It will be important to establish a schedule both during the day and at night when you regularly let your dog out to do his business.
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One way to address this issue is to take your dog outside when you get up to use the bathroom. By doing this the dog will know when to expect to be let out and will not become anxious.
You can also use the crate to keep your dog from tearing up the house when you are gone. This is especially true for puppies that may be teething and like to chew. Use the crate as a comfortable place for your puppy to retreat and not as place for punishment.
Most dogs will enjoy their crate. Dogs are domesticated pack animals so a crate has the feeling of a den. This is a place where they can escape when they are afraid or anxious, and where they feel safe. When you are introducing your dog to a crate it will be important to gradually increase the time you put them in the crate with the door shut. Start with just a few minutes and gradually work up, in this way your dog will not feel abandoned.
If you are going to feed your dog in the crate, it will be important to let it out to do its business right after you feed it. Never leave food in the crate, but rather feed your dog then let it out and remove the food from the crate. This will help to avoid any accidents when your dog is locked in their crate.
You will also want to get your pet used to a crate if you plan to travel with you dog. If you travel by air and want you dog to take the trip with you then the dog has to be used to riding in a crate. The airline also has its rules. You want to call to make sure you understand what the requirements are to transport a pet by crate.