Yeah, I'm using it in terms of scales. Harmonic generalization is the name given for playing a phrase (melody or harmony) in one scale over the entire chord progression. Like you would play a G major scale, over an entire chord progression like G major, D dominant, E minor, and C major. Mostly done in phrases, not so much in melodies and harmonies. Here's a tabbed example (c&p into notebook if needed.)

4/4
C.P Gmaj..............D7....Em....Cmaj
e:-------------------|-----|-----|-----|
B:-------------------|-----|-----|-----|
G:-------------------|-----|-----|-----|
D:---------5-----2---|--%--|--%--|--%--|
A:---2-5-3-----0---0-|-----|-----|-----|
E:-------------------|-----|-----|-----|
Beat 1 & 2 & 3 & 4 &

Same word, just different meanings. The other one I explained is chord harmonization when you harmonize a chord with a different scale. Keeping it simple and using the same part, I'll play the first part of the C chord in C lydian (G major) and then end with C major*.

4/4
C.P Gmaj..............D7....Em....Cmaj
e:-------------------|-----|-----|------------------|
B:-------------------|-----|-----|------------------|
G:-------------------|-----|-----|------------------|
D:---------5-----2---|--%--|--%--|---2-5-4---*2-3-5-|
A:---2-5-3-----0---0-|-----|-----|-3----------------|
E:-------------------|-----|-----|------------------|
Beat 1 & 2 & 3 & 4 &