How do you allow the employee to fully utilize his imaginative potential?

by directing him towards different areas where you "the manager" see his potential and comment on his results with encouraging words to make him believe that he has potential. Most of the time, you will be faced with an intelligent employee who does not believe it himself and need to be reminded.  

the opportunity to make a decision and assume responsibility confidence praise and encourage  his performance  but the  limited  so avoid vanity

By giving him new tasks while delegation of authority and a full hand on decision making.

Thanks

I fully agree with my colleague Zughaibi's answer

Regards

First of all, to allow them to make mistakes, and accept failures

Then to reward new ideas

Then to create a norm of "risk taking"

This is how imagination and creativity flourish, in an atmosphere of freedom.  

By opening up and listening to him and being receptive to his ideas.

Giving him teh chance to put his ideas into practice and closely coaching him and boosting him up.

Some employees lack of self confidence and they need to be pushed and encouraged.

Greetings,I will not order him what to do, I will let him have an initiative.Letting them have freedom in their works can enhance their creativity. I will also encourage an open communication in the team to allow them express themselves freely.

I can allow any employee to utilise his or him Imagination potential only in initial stages of projects.  

Thanks for invitation,

Agree with the answer of Mr. Zughaibi