OS Authentication works well and is useful despite the previous post, perhaps they misunderstood what you are asking. From my understanding OS Authentication works like this:
If user JohnDoe is set up in the database with external authentication, he must be logged into the domain to have access to the database. Therefore if he is not logged into the workstation he is accessing the database from, he will be denied access to the database. He does not need to enter his username or password.
If JaneDoe was set up for password authentication, she would be able to sit at John's workstation and log into the database as JaneDoe/herpassword and be connected. She does not need to be logged into the domain to access the database.
One critical point - you need to set up the user in the database even if you configure the database for external configuration, if the user does not exist in the database, they will not be able to connect to the database. I know it's an obvious point but you never know!
There are some configuration steps involved in setting this up so it works this way. I believe it is fairly well documented in the Oracle doc set. Hope I have given a clear explanation of how it works