Why Operating System?
The basic idea behind an operating system is this: it's the core software in a computer that (essentially) controls the basic chores of input, output, storage, and processing. You can think of an operating system as the "foundations" of the software in a computer that other programs (called applications) are built on top of. So a word processor and a chess game are two different applications that both rely on the operating system to carry out their basic input, output, and so on.
The operating system relies on an even more fundamental piece of programming called the BIOS (Basic Input Output System), which is the link between the operating system software and the hardware. Unlike the operating system, which is the same from one computer to another, the BIOS does vary from machine to machine according to the precise hardware configuration and is usually written by the hardware manufacturer. The BIOS is not, strictly speaking, software: it's a program semi-permanently stored into one of the computer's main chips, so it's known as firmware(it is usually designed so it can be updated occasionally, however).
Operating systems have another big benefit. Back in the 1970s (and early 1980s), virtually all computers were maddeningly different. They all ran in their own, idiosyncratic ways with fairly unique hardware (different processor chips, memory addresses, screen sizes and all the rest). Programs written for one machine (such as an Apple) usually wouldn't run on any other machine (such as an IBM) without quite extensive conversion.
That was a big problem for programmers because it meant they had to rewrite all their programs each time they wanted to run them on different machines. How did operating systems help? If you have a standard operating system and you tweak it so it will work on any machine, all you have to do is write applications that work on the operating system. Then any application will work on any machine. The operating system that definitively made this breakthrough was, of course, Microsoft Windows, spawned by Bill Gate