Stress-strain relations are given for an initially isotropic material, which is macroscopically homogeneous, but inhomogeneous on a microscopic scale. An element of volume is considered to be composed of various portions, which can be represented by subelements showing secondary creep and isotropic work-hardening in plastic deformation. If the condition is imposed that all subelements of an element of volume are subjected to the same total strain, it is demonstrated that the inelastic stress-strain relations of the material show anisotropic strain-hardening, creep recovery, and primary and secondary creep due to the nonuniform energy dissipation in deformation of the sub-elements. Only quasi-static deformations under isothermal conditions are considered. The theory is restricted to small total strains.