Here is one trick that should work.
Summary: If the prompt table has keys, and if those keys line up with existing fields on the page, then PeopleTools will further limit the search results on the prompt table. This works the same way when choosing a Department within a SetID/BU. Only departments for the specific Setid/BU appear in the list (if TableSet Control Sharing is implemented correctly).
Details on solution: Make a new VIEW that has the following fields: SETID, SUPERVISOR_ID, DEPTID, DESCR, making the first three fields "keys", but only marking the "Search" and "List" checkbox on Department and Description. Then have this VIEW point to the JOB and Department table (with appropriate joins). (Not sure on performance by doing this view on JOB, but you get the idea.) (You may have to add this VIEW on TableSet Sharing in the Department Record Group or a new Group, or just take out the SETID field and logic.)
On the page, make sure the SUPERVISOR_ID is present (even if it is on a work record), and pre-populate it (with RowInit PeopleCode) based on the necessary value (in your example, %EmployeeID). Lastly, change the prompt to be the new view, and it should work.
I have done this on custom applications in PeopleSoft.
David Vandiver
www.DavidVandiver.com