An Algorithm is a step by step procedure to accomplish task. This use for calculation, Date Processing and automated reasoning. The word "Algorithm" is derived from Arab mathematician "Al-Khwārizmī"(825 AD).
In our daily and professional life we have to perform sequence steps to complete task. For an example : If you need to prepare a cake you have to follow few steps to make that. which mean you have to add and mix ingredients on fan and you have to bake it and you have to test with fork before taste it or serve it to somebody else.
Therefore you may have understood algorithms follows certain steps to finish task. It can be categorised in to three phases.
Input Phase -Add Ingredient to fan
Process Phase - Mix and Bake the Cake
Output Phase - As a result of above process you can have a Cake.
