Michael was determined to come to a resolution when he found out that Oscar and Angela were fighting. He called them into the conference room to talk and had Pam in there to mediate. Oscar wanted Angela's poster of musician babies taken down because it reminded him of stage moms and doomed childhoods; Angela thought the poster was cute.
Michael didn't believe that Toby was doing a good job at conflict resolution in the building, so he took the job from him. Toby was happy to give the position up; now Michael would have to deal with people's complaints, especially the hundreds from Dwight alone.
Michael wanted to air everyone's complaints about each other out in the open. Pam volunteered to be the first person. There was only one: Somebody complained that Pam did too much work on her wedding while she was at the office. She automatically assumed it was Angela. That made Pam mad because she knew about Dwight and Angela's affair and was nice enough to keep it to herself.
Michael continued to read off complaints about people in the office. This was creating turmoil within the entire staff. Michael's way of dealing with conflict was to encourage confrontation. Dwight was fed up that his complaints about Jim were not being dealt with, and he wanted Jim transferred. He had no idea that Jim was already talking to Jan about a transfer.
Besides being a day where Michael wanted conflicts resolved, it was also a day to take new security badge pictures. Before the photographer left, Michael paid him to take a group picture of the staff at Dunder-Mifflin. Nobody was smiling because of the earlier confrontations. Pam was mad at Jim because he confessed he'd sent out the complaint about her wedding planning, not Angela.