He studied economics and business administration at the Ludwig Maximilian University of Munich from 1949 to 1954, where he obtained his Diplom-Kaufmann (former German master's equivalent).
Afterwards, he obtained his Ph.D. in business administration and his habilitation in 1966 at the Ludwig Maximilian University of Munich.
After a proposal in 1972, he became professor for human resource management and general business administration at the University of Mannheim (UMA) where he succeeded August Marx.
Furthermore, he succeeded Peter Frankenberg in his role as rector of the university in 1973 and remained in this position until 1976.
From 1991 to 1998, Gaugler served as director of the Institute für Mittelstandsforschung (Institute for Small- and Medium Sized Companies) at the UMA, where he conducted research on the German Mittelstand.