In shape memory alloys, macroscopic inelastic deformations can be caused by phase transitions and reorientation of previously formed martensitic elements during structural transformation. Despite the fact that phase and structural deformation are interrelated, there are significant differences between them. As distinct from phase deformation, structural deformation is characterized by strain hardening: the elastic region is limited by the loading surface in the stress deviator space, inelastic deformation affects the size and position of the loading surface. In contrast to structural deformation, the phenomenon of hardening is not typical for phase deformation, phase transitions can occur without load, and phase deformation can be observed with decreasing stresses or without load. In this paper, a combined model of phase and structural deformation of shape-memory alloys is considered. It takes into account the mentioned properties of inelastic deformations in shape memory alloys. The model describes both phase and structural mechanisms of inelastic deformation, and influence of the first mechanism on the second. Inelastic deformation due to structural transformation in the active process obeys the associated flow rule. The differential condition for the active process and structural deformation is formulated. Tensor increment of the structural deformation is required to be codirectional with the external normal to the loading surface, hardening parameter associated with the structural transformation correspondingly is required to be positive. Most existing models considers only formation of new martensitic meso-elements, but do not take into account the development of meso-elements formed earlier. Meanwhile, experiments show that the development of martensitic elements can significantly affect deformations. This factor is necessary for describing the phenomenon of oriented transformation correctly, and the processes in which thermoelastic transformation from austenite to martensite occurs at stepwise or smoothly decreasing stresses. The subject of this article is the extension of the combined deformation model of shape-memory alloys to the relations that allow taking into account the development of martensitic elements during the phase and structural transition. The process of proportional loading with linearly increasing stresses is considered as a model problem. The obtained results are compared with the corresponding results obtained without considering the development of martensitic elements