Imagine you want to bake a cake. You follow a recipe that tells you step-by-step what to do: gather ingredients, mix them in a certain order, bake at a specific temperature, and finally decorate. This recipe is like an algorithm in computing -- a clear set of instructions to solve a problem or complete a task.
Just like a recipe, an algorithm must be precise and unambiguous. If the recipe says "add sugar," you know exactly how much and when. Similarly, an algorithm tells the computer exactly what steps to take and in what order.