In which  sort algorithm divides the list into two parts, sorted and unsorted. Initially, the sorted part contains only one element. In each pass, one element from the unsorted list is inserted at its correct position in the sorted list. As a result, the sorted list grows by one element and the unsorted list shrinks by one element in each pass.

The algorithm you're describing is known as the Insertion Sort algorithm. Here's how it works:

1. Start by considering the first element of the list as the sorted part and the rest of the list as the unsorted part.

2. Take the first element from the unsorted part (i.e., the second element of the whole list) and compare it with the elements in the sorted part, moving from right to left.

3. If the unsorted element is less than the element being compared to, shift the compared element to the right. Continue this process until you find an element that is less than or equal to the unsorted element or until you've shifted all elements in the sorted part.

4. Insert the unsorted element into the gap you've created through shifting.

5. Repeat steps 2-4 for all elements in the unsorted part until the entire list is sorted.

This way, the sorted part grows by one element and the unsorted part shrinks by one element in each pass, as you described.