Here is a quote from NY Times
Generic Knowledge: This is about knowing something. For example, you did your MBA and know all about Balance Sheet, CFS, fundamental analysis etc. This is the kind of knowledge that one gets from the classroom.
Procedural Knowledge: Also known as 'Practical Knowledge', this is the knowledge about how to do something, how to get things done. For example, you will come out of MBA with full knowledge of the theoretical aspects of Marketing (Full of General Knowledge in Marketing Management), but until you dirty your hands in the competitive world of product selling, until you go to the field and directly interact with the end customer, you will not know the practical aspects of how to sell something.
Many of us have a lot of theoretical knowledge, but woefully lack practical knowledge.