Really I'd say the earliest machine "algorithms" was the operation of the abacus (
http://wiki.answers.com/Q/How_do_you_use_an_abacus), such that moving certain beads around gave you certain numbers - this can be viewed as a rough input/output calculating system. This originated in China I believe thousands of years ago. All an algorithm really is is a sequence of steps to go from an input to an output - a finite, discrete, numerical sequence of steps. A trivial example would be:
Input X, Output 0
Algorithm:
while x is not equal to 0, subtract 1 from x
When x equals 0, return x.
This is a finite series of step to go from input (x) to output (0). I just subtract 1 from x over and over until I have 0.
No matter how complex algorithms can get they are basically the same thing, at least in sequential programming - I don't know too much about other more recent stuff to be honest - but traditional programming is just taking an input, applying a set of operations on the input, one at a time, until the set of operations is completed and you have an output. An algorithm is just a "recipe" or a set of operations. A recipe is a series of steps to be done to food to make a meal. Similarly an algorithm is a series of steps to be done to an input to make an output. Most languages are basically like this in programming: FORTRAN, C, ASSEMBLY are all basically this same idea of sequential, finite operations on inputs.