I have recently started my OS course. As far as i know the work of dispatcher is to save the context of current process and load context of process to be run next. But how does it do that? When a process is preempted then as soon as dispatcher will be loaded and executed ( as it is also a program ) the context of previous process in registers, PSW etc will be lost. How is it going to save the context before loading itself ?
The simple answer is that modern processors offer architectural extensions providing for several banks of registers that can be swapped in hardware, so up to X tasks get to retain their full set of registers.
The more complex answer is that the dispatcher, when triggered by an interrupt, receives the full register set of the program that was running at the time of interrupt (with the exception of the program counter, which is presumably propagated through a mutually-agreed-upon 'volatile' register or some such). Thus, the dispatcher must be carefully written to store the current state of register banks as its first operation upon being triggered. In short, the dispatcher itself has no immediate context and thus doesn't suffer from the same problem.
Here is an attempt at a simple description of what goes on during the dispatcher call:
To (over)simplify in summary; the dispatcher doesn't need registers, all it does is write the current cpu state to a predetermined memory location, load another processes' cpu state from a predetermined memory location, and jumps to where that process left off.
Does that make it any clearer?