Sir/Madam concept in some MNC's

We are in the 21st century where everything has changed drastically and we are now in modern technology and living in an advanced culture, and it's very surprising that people are still following the Sir/Madam culture in some MNC'S and that also in the city like Bangalore. Some Supervisors/Managers like their subordinates to call them by Sir/Madam instead of by their name and also they like to sit in cabins separately. Are we living in the 21st century??