Hello,
Without having your data I mocked up a worksheet. This was a 2 stage process. The first process was to filter the available names from the department selected using this formula:
Formula:
=IFERROR(INDEX(Table1,SMALL(IF(Table1[Department]=$D$2,ROW(Table1[Department])),ROW(1:1))-2,2),"")
This is an array so press CTRL+SHIFT+ENTER to get the curly brackets and drag down your range.
Then I created a named range called 'Names' and have this formula:
Formula:
=OFFSET(Sheet1!$E$2,0,0,COUNTA(Sheet1!$E:$E),1)
In a cell for your data validation list enter this:
=Names
I hope this helps
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