A batch file contains a sequence of commands for a computer OS. Batch files are called so due to their ability to batch or bundle commands together in a single file which otherwise would have to be executed individually. Batch files are typically created for command sequences for which the user may have repeated needs.
Common uses of batch files are for deleting a series of files, running utilities and moving files. Once a batch file is executed it's read by a shell program which executes it line by line. A batch file is something similar to a shell script in UNIX like OS's .
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Batch files are intelligent enough to make decisions and performs operations only if a certain conditions exist or don't exist. Certain batch files are known to execute commands that are not available under DOS.
The commonly used batch file is AUTOEXE.bat which is a simple boot file which loads every time MS DOS starts and contains a list of commands used to run programs on MS DOS.
The most apt comparison would be with a desktop shortcut in windows which runs programs. Though out dated, batch files are still used by system administrators to automate routine processes. Even though batch files support basic program flow commands such as IF and GOTO they are un-suited for general purpose programming.