A greedy algorithm is a problem-solving technique that follows the problem-solving heuristic of making locally optimal choices at each step to find a global optimum. While this may find an optimal solution, it does not guarantee to do so as it does not consider the overall problem. The document discusses applying a greedy algorithm to solve the activity selection problem by always selecting the next activity that finishes earliest without conflicting with previously selected activities. It provides recursive and iterative implementations of the greedy algorithm to solve this problem in O(n log n) time by first sorting activities by finish time.