An algorithm is developed for the strain-driven problems and is employed in the incremental finite element analysis. The problem of stress calculation at the end of a load step is reduced to solution of a nonlinear equation, and the procedure represents an application of the governing parameter method. Hardening and softening plasticity regimes are analyzed in detail. Derivation of the tangent constitutive elastic-plastic matrix, consistent with the stress integration algorithm, is also presented. This matrix provides the quadratic convergence rate in the incremental-iterative finite element analysis.