I don't think stored procedure parameters can take multiple values. What you could do instead is pass in the list of items as a comma delimited string, and then structure your query like so:
select * from test1
where
(@department = department) or
(@department like '%,' + department) or
(@department like department + ',%') or
(@department like '%,' + department + ',%')
Alternatively you could write a SQL function to parse the string into a table variable, then join your table with the table variable to find matches.