Issues with last name

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Though last name [also called family name, surname] are common, there are many instances that I know of, where people didn't have one and they realized its importance or need when applying for a passport. Its a must for passport & is very much necessary in many countries of the west. The other dimension of the last name is something that I learnt from a senior boss but like I was doing, many people make an incorrect usage. I was educated by my boss that the title [Mr/Mrs/Dr etc] is normally prefixed with the last name and never with the first name [that's the correct way, I learnt]. For example, if my name is James Alexander, I may either be addressed as James or as Mr. Alexander and never as Mr. James. The amusing thing is, particularly in India, people take offense if called by their first name without the title. They think it means disrespect. This is due to ignorance of the fact that if someone can call you by first name, he is informal and it is no offense to call by first name. If the other person is not close to me or friendly with me he would better call me as Mr. Alexander and not as Mr. James!! Have anything to say?