While I was browing to get the complete Bhaja Govindam slokam from the internet, I chanced upon a site that told me the reason why this slokam was composed.
When Sri Adi Shankaracharya was in kashi, he saw an old man learning the rules of grammar. This slokam is an advice to the old man to spend in time in gaining spiritual knowledge rather than intellectual knowledge. He advises the old man to seek God and salvation, instead of concentrating on worldly things.
The slokam begins with:
bhajagovindaM bhajagovindaM govindaM bhajamuuDhamate . saMpraapte sannihite kaale nahi nahi rakshati DukR^iJNkaraNe ..
The above verse means:
Worship Govinda, Worship Govinda, Worship Govinda. Oh fool ! Rules of Grammar will not save you at the time of your death.
Each verse in the slokam is full of wisdom. It is very soothing to recite them.