Events at the Sunset Hotel illustrate the numerous human resources issues that can develop when a senior manager who was passed over for promotion distorts messages and undermines his supervisor’s constructive change efforts. Rumors flourish, employees become confused, and Sunset Hotel’s general manager is frustrated in his inability to accomplish goals. It is uncertain whether the general manager will be able to regain the senior manager’s support or to prevent his behavior from affecting employee morale and damaging the hotel’s image and reputation.