Melody greets her fellow staff members as they wearily enter the main lodge, serving them coffee and danishes. The sleepy staff has been ordered to get up 30 minutes early and report to Mr. E's office. They are there to hear about Mr. Ernst's latest effort to boost employee morale, an Employee of the Week competition.
Ernst enters the room and shows the gang a wooden plaque he says will be used to display the name and photo of each week's winner. But, Mr. Ernst notes that that's not all the lucky winner will receive. Winners will also receive the respect and admiration of their fellow staff members. The staff is underwhelmed.
Still, after thinking about it awhile, the competitive nature of each teenage staff member is awakened, and all begin thinking about what they might do to win. Over dinner that night, they toss about a few ideas. Brad seems to think that inviting some of her wealthy friends to the Bar None might impress Mr. Ernst. Danny thinks that bringing an Indian friend over to teach Indian lore to the guests is his ticket. Ted comes up with a particularly weak idea: putting on knife-throwing shows for the guests. Melody has an idea that, on the surface, seems like a good one. It's simple, just be...nice. Really, really nice.
Mr. Ernst, having noticed that the kids weren't too impressed with the plaque, decides that something else must be given to the winner. He orders a used bowling trophy, which arrives in a very beaten up old box. Mr. E tells Brad that it was suppose to be new (obviously lying). Brad takes one look at this and decides that perhaps this Employee of the Week thing is not for her. She tells Melody that she has never bowled in her life and she doesn't plan to so she exits from the competition.
Later, Mr. E finds Danny doing some chores he hasn't even been asked to do and points out that life at the Bar None would be "nicer" if everyone had Danny's attitude. Danny takes this all in, but his good mood is soon shattered when Mr. E shows Danny his latest incentive in the Employee of the Week competition -- a crown. This turns out to be one of those tiny tiaras like beauty pageant winners wear. Turns out the store was out of the male crowns so they substituted the female model. Mr. E says it will have to do until the other model comes in. Danny tells Ted, that he is not wearing a girly crown. So Danny quits the competition.
Now the only two people actively competing for the coveted title are Melody and Ted. As you might expect, this battle to see who is the nicest turns into something that's anything but nice. The resentment between these two grows so thick you can cut it with a knife. And as their desperation grows, their ideas begin to backfire. For instance, no one is pleased with the colorful little ribbons Melody has put on Cassie and on some horses in the corral. And Mr. E is not pleasantly surprised by the wax job Ted has done to his office floor; he promptly slips and falls on his rear end.
The ugliness between Ted and Mel reaches its zenith when Ted pays a visit to the girls' bunk. Ted tells Mel that the nicest thing she could do for him would be to "disappear off the face of the earth". Danny and Brad listen to the heated exchange from outside the bunkhouse.
Concerned, Danny pays a visit to Mr. E and explains how this contest has brought out the worst in everybody. A concerned Mr. E heeds Danny's advice to call off the competition.
Meanwhile, Ted and Melody have had time to simmer off and think about their words to each other. Ted, takes the first step and apologizes to Melody for his behavior. A beaming Melody returns the apology, and the two are buddies again.
And so the staff decides to take the plaque, the trophy, and the "girly crown" and present them to Mr. E, honoring him as "Best Boss of the Decade". He seems touched by the gesture.
At the end, Danny dons Mr. Ernst's cowboy hat and pretends to be him. He tells everyone they can have all the things they were hoping the Employee of the Week title would bring them. He informs Ted that he can have a bonus -- all the money he can fish out of the wishing well with his teeth. He then says that Brad can have more goof-off time, as long as she takes it between 2a.m. and 4a.m.. Then he gets around to himself. Still acting like Mr. E, Danny says that his parents will get a nice letter home telling them how lucky they are to have a son like Danny. And, last but not least, there is Mel's reward. Danny singles her out as the one most responsible for all the craziness that took place during the week. And for that, he says, she should receive double dessert. He grabs a hunk of cake and shoves it into her face. This leads to food fight.