When an attractive woman, Katy, comes to the office to solicit her purses, all of the male staffers vie for her affection. Pam struggles with whether or not to be jealous of Katy's attention.

The office staff play a basketball game against the warehouse workers in which Jim shows off to impress Pam and upstage her fiance who is on the opposing team.

Michael arranges a morale-boosting birthday party for Meredith and is determined to come up with the funniest message in her card. Dwight wants an alliance with Jim to fight the downsizing, and Michael regrets showing off when Oscar asks for sponsorship f

Michael doesn't want to upset the staff so he gets Dwight to pass on news about the company's reduced health provisions.

A consultant arrives to teach the staff about tolerance and diversity but Michael insists on imparting his own knowledge. Meanwhile, Jim struggles to keep hold of a lucrative contract extension.

A documentary crew arrives at the offices of Dunder Mifflin to observe the employees and learn about modern management. Manager Michael Scott tries to paint a happy picture, while sales rep Jim fights with his nemesis Dwight and flirts with receptionist P