Process scheduling involves managing the CPU and selecting which process runs next based on scheduling strategies. The operating system maintains different queues for processes in various states like ready, blocked, and running. These include the job queue, ready queue, and device queues. Schedulers select processes and move them between queues. The long-term scheduler selects processes to load into memory while the short-term scheduler selects the next process to run on the CPU. The medium-term scheduler handles swapping processes in and out of memory. Context switching involves saving a process's state when it stops running and restoring another process's state when it starts running.