2 ways to change:
1) Right click inside pivot table (PT), PT options, Display tab, check "Classic PT Layout"
2) In PT toolbar, Design Tab, Report Layout, choose "Show in Tabular Form". Compact Form is what you have now, Outline Form will look similar to what you had in Excel 2003, but the 2nd Row Label will be one row underneath the 1st Row Label. Both the Compact & Outline Forms will put the subtotal at the TOP (you can change subtotal to bottom: PT toolbar, Design, Subtotals: Don't show, Show at top of group, Show at bottom of group)
By the way, I've heard in Excel 2010 PTs you can opt to display the "upper" row levels all the way down (i.e. you could show your "Dept1" in every row down to "Dept2".) It will eliminate the need to GoTo/Special/Blanks, etc. when the pivot table has been copied to another sheet as values so that additional manipulation can be done.
Hope this helps.