An operating system (OS) acts as an interface between the user and computer hardware, providing essential services such as program creation, execution, access to I/O devices, file management, system access, error handling, and resource accounting. Various OS types include interactive, batch, and multiprogramming systems, with advancements leading to time-sharing and real-time systems that handle multiple users or processes simultaneously. The design of an OS is driven by performance, power, cost, and compatibility, with its core components including the kernel and various system programs.