Herman fills out an evaluation form for Mr Bracken which included some negative remarks. After realizing that his evaluation might have serious consequences on Bracken's career, Herman goes about trying to set things right.

Herman and the others decide to help Mr. Bracken quit smoking by all resolving to give up one bad habit of their own in a show of team support. Unfortunately, the result is that everyone is going crazy, just in time for a corporate consultant's review of team performance and downsizing.

No good deed goes unpunished for Herman once more when he hires Louise's friend as an office intern, and she turns around and sues him for sexual harassment.

Waterton's sudden death creates a scramble for power, and to save everyone's job, Herman decides to join forces with Crawford - who then involves Herman in a secret campaing to eliminate the competition for control of the company.