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In the tutorial by Deborah Dalgliesh from Contextures.com, the process of creating a dropdown list of employee names in Excel is explained, focusing on using new functions in Excel 365, specifically the SORT and FILTER functions. This method aims to simplify filling in a schedule by generating a shortlist that excludes already selected names. The tutorial starts with an overview of the current setup, showing how the dropdown is linked to a named range containing all employee names. It highlights the issue of previously selected names still appearing in the dropdown, which could lead to potential errors. For users with earlier Excel versions, alternative instructions are provided on the website.