Here are some quick steps to filter contacts by Department/Location:
1. On the left navigation Click Contacts.
2. Then, in the upper navigation of the Contacts Page, there is a check box on the left with a label that switches between "Enable / Disable Matching. Check this check box to Enable Matching.
3. In the Header, click the Department / Locations drop-down list, this will show each of the locations. Click to choose 1 or more Locations at once.
4. Then, click Search
Below is a sample result: