You can just use the relationship property to get the set of employees for a department:
Department *theDepartment = ...; // your department
NSSet *employeesInDepartment = theDepartment.employees; // set of Employee objects
Or, if you need an array:
NSArray *employeesInDepartment = [theDepartment.employees allObjects];
Alternatively, you can use the following fetch request:
Department *theDepartment = ...; // your department
NSFetchRequest *request = [NSFetchRequest fetchRequestWithEntityName:@"Employee"];
NSPredicate *predicate = [NSPredicate predicateWithFormat:@"department = %@", theDepartment];
[request setPredicate:predicate];
NSError *error;
NSArray *employees = [yourManagedObjectContext executeFetchRequest:request error:&error];