In Jazz harmonic generalization means to outline chords in the melody/solo that are not present in the given harmony of the moment.
So for example, if the chord in lets say measure 7 is a Cmaj7 I may use harmonic Generalization to outline the Amin7 chord by using approach tones to emphasize the chord tones of A-7, so for instance I may play a line like this:
G#ACEGGbFD#EA (boy,I wish it was possible to print music on this forum.)