How to help children in arguments. (Emotional awareness)

How to help children in arguments.
Personally, I do not believe in punishing or getting (very) angry to 'make a point'.  I believe that as a parent/caretaker/teacher; it is important to create a safe place, teaching children that it is OK to be in contact with their emotions and that they can show them no matter what the situation is. 
Emotional awareness is important. *It helps us build better relationships. That's because being aware of our emotions can help us talk about feelings more clearly, avoid or resolve conflicts better, and move past difficult feelings more easily.
With that being said, someone asked me what I would do when a group of boys/girls are in an argument, fight/discussion. 
I told them the following:
Step 1: 
First, listen to every person's story, so they know they have been heard. 
Step 2:
Then tell everyone in the group that they will do the following 2 things:
1: They will give a person in the group ( they can choose who they want) a compliment.
For example, I give... a compliment he/she is good at...or wears a nice sweater.  
2 Let them tell the other(s) what they will not do anymore.
For example, I will not push anymore... or I will not scream anymore to...
Children always know by themselves who they want to give a compliment to and to which person they want to make that '''' promise''''. Always let the child think for themselves for a few minutes; this makes the child aware. If you see them struggling you can give them suggestions. 
When they are finished, check with the group if everyone feels better. Let them know how proud you are of all of them for doing this and then let them play again. 
For the parent/caregiver/teacher you will not have to raise your voice or get angry. Giving punishment like 'go to your bed or to the hallway' is not a solution, it will not fix the problem.
I also notice how much positivity it gives towards the children. That it is allowed to have their emotions and being okay with them, seeing that others can show them too and a solution for the conflict. Creates a safe place.

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