limiting filters with parameters

Let's imagine that I have a list of documents that each are associated with an employee. I want to be able to filter by employee, so that I only see the documents associated with that person.

Each employee is either located in North America or Europe.

I would like to be able to be able to:

  • Select from a list of all employees
  • Select from a list of only the employees located in North America
  • Select from a list of only the employees located in Europe

We have come up with two possible solutions for this problem:

  1. Use radios to enable a select with the list of employees. This seems fairly clear (?), but is taking up a lot of screen space.

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  1. Have a single select whose options are updated depending on the selected radio option:

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Which is the better solution? Why? Are there alternatives that would be more user friendly?