This paper presents an efficient algorithm which determines the parameters of discrete PID controller. The proposed algorithm is an algebraic method to obtain controller parameters using ROM(Reduced Order Model), which can not only make design procedure simple but also reduce the computational burden required for controller implementation. Also, by solving a set of linear equations based on least squares method, the proposed method can make the controller design procedure systematic. Simple examples are given to demonstrate the effectiveness of our method when compared with widely-used conventional method.