Every year at Dunder-Mifflin, Michael puts on an award show for all the employees to feel special about something. Basically the employees hate it, but Michael does it anyway.
Touring past Dundie winners, Jim tells Michael that he keeps his Dundies hidden so he doesn't get cocky, while Dwight's are on display in a case over his bed.
At the last minute, though, Michael finds out that corporate doesn't approve of the Dundies because they've only given him a budget for one party a year. They aren't going to pay for it.
Now there's no open bar. And Michael needs people to be drunk in order for them to think he's funny.
Michael addresses the group about the Dundies. He says all the employees, friends and families are invited as well. He wants to make this year the best Dundies ever.
The awards take place at Chili's and Michael is the MC. He opens the show with a failed attempt at a rap and some horrible comedy. Pam proceeds to get hammered when her fiancé leaves early.
The "Busiest Beaver" award goes to Phyllis, except the award says, "Bushiest Beaver."
Ryan, the temp, gets the "Hottest in the Office" award. Jim says it's good that Michael has finally made it clear how he feels about Ryan.
The "Tight Ass" award goes to Angela because she's a stickler and has a great caboose.
The "Spicy Curry" award goes to Kelly, the Indian girl. Her statue is a bowler because the trophy company ran out of businessmen. She's clearly offended.
Stanley receives the "Fine Work" award.
Pam gets the award for "Whitest Sneakers." A very drunk Pam then gives a speech. She thanks her shoes, then Michael for MC-ing, Dwight for his great work on sound mixing, and God because he gave her this Dundie and she feels God at Chili's. She then kisses Jim on the lips.
Michael thinks this year's Dundies are a great success, although Pam ends up being banned from Chili's for life.