Which of the following are correct?

Both 1 and 2

The correct answer is option 3- Both 1 and 2. 

• Statement 1: Motion Study involves analysing the movements required to perform a task efficiently — this is correct, as it aims to eliminate unnecessary motions and improve productivity.
• Statement 2: Gang Plank refers to direct communication between employees at the same hierarchical level but in different departments — this is also correct, as it allows faster coordination bypassing the scalar chain.

Under Fayol’s Scalar Chain, communication usually flows strictly up and down the hierarchy. If "Employee A" in Production needs to talk to "Employee B" in Sales, the message would normally have to travel all the way up to the CEO and back down. The Gang Plank creates a "shortcut" for urgent matters, ensuring that the organization doesn't grind to a halt due to bureaucratic delays.