I just tested this and it seems to work the way you're saying it does. I have to admit, I usually just tell my phone to "play some music" and go with the random playlist it gives me, or try again a time or two and take that one.
Generally, when I want to listen to just a specific album (rarely, though it has happened on occasion when a band I like has a new one), I pull it up manually.
I did have it shuffle songs by an artist when I told it to play "band name album" for a self-titled album, so it was close, but it was pulling from multiple albums instead of just the self-titled one.