Process scheduling is a method used by an operating system to manage the execution of multiple processes. It determines which process runs at any given time, ensuring that all processes receive fair access to the CPU. This is crucial for maintaining system efficiency and responsiveness. There are various scheduling algorithms, such as First-Come, First-Served and Round Robin, each with its own advantages and disadvantages. These algorithms help prioritize processes based on factors like urgency and resource requirements, allowing the system to allocate CPU time effectively and improve overall performance.