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Yes its good that a local company hire an HR manager from their own country.
This qustion was raised earlier in some other form and i would say Yes for HR manager they go for local professional as they need some who is familiar with local setup, culture and laws and this could be beneficial for the organization as they have to interact with whole organization. I would second Amal Mandhora.
I strongly beleive on "Equal Oppertunities" employers who hire people irrespective of their nationality.
With globalization, I think nationality shouldn't be considered as a deciding factor. However, it is essential that the individual has an understanding of the cultural and ethic differences when processing applications. Further, they obviously need to have the right qualifications and experience.
An HR Manager's position is very critical and the right candidate must be selected.
Keeping in mind that the HR Manager must know local and cultural sensitivities that could affect employees's performance in the Organization, the HR Manager must have worked locally in that country.
His/her nationality will not be important if he/she has local experience and the desired Qualifications.
The question have the point of selecting the HR whos residence is country national but in some cases like an applicant who deired to work for the said position! the employer must review the qualifications of that applicant and if he qualifies then theres no reason for him not to be hired!anyway cultures and laws of the country can be learned and adopted.